CURRENCIES: Dollar Rebounds Vs. Most Rivals Except Yen
By Polya Lesova
The U.S. dollar rebounded against its major rivals except the Japanese yen
on Thursday, as declines in global equities prompted investors to sell
currencies perceived as risky.
The dollar index (DXY), which measures the greenback against a trade-weighted
basket of six major currencies, gained 0.6% to 74.678 in recent trading.
It earlier fell to 74.227, its lowest level since August 2008. The index was
at 74.252 late Wednesday.
The recovery in the U.S. dollar came as most Asian and European equity markets
posted losses. China's Shanghai Composite index ended down 3.6%, while the pan-
European Stoxx 600 index dropped 1.5%.
The euro fell 0.4% to $1.5071; it traded at $1.5137 late Wednesday. The
British pound dropped 1% to $1.6540.
Dollar falls to 14-year low vs. yen
The dollar, however, declined 0.5% to 86.88 Japanese yen.
The greenback earlier tumbled to 86.28 yen, its lowest level since July 1995.
It was at 87.37 yen in late North American trading Wednesday.
Japan Finance Minister Hirohisa Fujii reportedly said Thursday that it's "time
to watch the foreign-exchange market carefully," signaling that Japan may
strengthen its monitoring of currency markets. But traders say the remark isn't
a sign policy makers were preparing to immediately intervene.
Japan hasn't intervened in currency markets in more than five years, after it
sold a massive 35 trillion yen in the 15 months through March 2004.
A weaker dollar makes goods imported into the U.S. more expensive and
therefore less competitive.
The Philippines, Thailand and Singapore all reportedly intervened directly in
foreign exchange markets Thursday, in an apparent effort to keep the plunging
dollar from undermining their export-focused economies.
(END) Dow Jones Newswires
11-26-090424ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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