uscitizen
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Euro Fetches $1.55 for the First Time
Wednesday March 12, 12:59 PM EDT
FRANKFURT, Germany (AP) — Skepticism about the latest U.S. Federal Reserve Bank plan to restore calm to jittery global credit markets dropped the dollar to new lows, with the euro pushing past $1.55 for the first time ever Wednesday.
The Fed on Tuesday announced a rescue package that would pour as much as $200 billion into banks and investment houses, in concert with help from the European Central Bank along with central banks in Britain, Switzerland and Canada.
Concerns the Fed action may be outweighed by U.S. economic difficulties gained strength in trading Wednesday, halting a euro slide and pushing it instead to a record high of $1.5513, surpassing its previous record of $1.5495 set Tuesday.
The 15-nation euro fell back to $1.5490 — still above the $1.5486 it bought in New York late Tuesday.
"The positive dollar impact of yesterday's coordinated central bank operations is already proving unsustainable as the U.S. currency falls across the board," said Ashraf Laidi, the chief foreign exchange strategist for CMC Markets in New York.
Traders were also weighing a report from Zawya Dow Jones that said the United Arab Emirates was deciding whether to continue pegging its currency to the plummeting U.S. dollar.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8vc0p680&date=20080312
Wednesday March 12, 12:59 PM EDT
FRANKFURT, Germany (AP) — Skepticism about the latest U.S. Federal Reserve Bank plan to restore calm to jittery global credit markets dropped the dollar to new lows, with the euro pushing past $1.55 for the first time ever Wednesday.
The Fed on Tuesday announced a rescue package that would pour as much as $200 billion into banks and investment houses, in concert with help from the European Central Bank along with central banks in Britain, Switzerland and Canada.
Concerns the Fed action may be outweighed by U.S. economic difficulties gained strength in trading Wednesday, halting a euro slide and pushing it instead to a record high of $1.5513, surpassing its previous record of $1.5495 set Tuesday.
The 15-nation euro fell back to $1.5490 — still above the $1.5486 it bought in New York late Tuesday.
"The positive dollar impact of yesterday's coordinated central bank operations is already proving unsustainable as the U.S. currency falls across the board," said Ashraf Laidi, the chief foreign exchange strategist for CMC Markets in New York.
Traders were also weighing a report from Zawya Dow Jones that said the United Arab Emirates was deciding whether to continue pegging its currency to the plummeting U.S. dollar.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8vc0p680&date=20080312
