This story was printed from TODAYonline 
Friday • October 10, 2008
The dollar firmed Thursday against the euro on the eve of a meeting of Group of Seven finance chiefs, with nervous investors focused on global financial turbulence that has markets reeling.
The euro was at 1.3590 dollars around 2100 GMT, down from 1.3663 dollars late Wednesday.
The dollar was trading at 99.50 yen, up slightly from 99.42.
"Forex markets continue to see tremendous volatility on persistent turmoil in broader financial markets," said David Rodriguez, an analyst at Forex Capital Markets. Quantitative Analyst
"A glance at currency options markets shows that traders predict similarly volatile trade through the weeks ahead," he said.
The market was preoccupied with speculation about a meeting in Washington Friday of finance ministers and central bank governors of the G7 major economies.
"Signs of hope are finally emerging that a globally coordinated approach to the financial crisis could be agreed between policy makers at Friday's G7 meeting," analysts at French bank BNP Paribas said.
The Group of Seven meeting will bring together the top finance officials of the United States, Germany, Japan, France, Britain, Italy and Canada for collective-thinking on the credit crunch and crashing stocks.
The gathering will be closely watched by investors, eager to see solutions and cross-border action by the world's leading powers to help a return to normal lending practices and calm stock markets.
US Treasury Secretary Hank Paulson said Wednesday the meeting would be a forum "to discuss the steps that each of us are taking to confront this crisis and ways to further enhance our collective efforts."
The European Central Bank on Wednesday joined counterparts in the United States, Sweden, Britain, Canada and Switzerland to lower benchmark lending rates by half a point.
But their drive to jumpstart credit flows on interbank markets has been slow to take effect, as debt-laden banks remain reluctant to lend money to one another and to businesses.
At Citigroup analysts predicted that "independent rate cuts are more likely to fuel further gains in the euro, as it will demonstrate the capacity for the European Central Bank to be proactive on economic and financial developments rather than reactive to lagging inflation data."
In late New York trading, the dollar rose to 1.1289 Swiss francs from 1.265.
The pound slipped to 1.7080 dollars from 1.7298. — AFP