|
 |
| Dollar falls against euro |
|
Time is GMT + 8 hours
Posted: 13-Oct-2008 18:59 hrs |
|
| A euro coin and one US dollar bill. The dollar has dipped against the euro, with investor confidence still muted despite a pledge by Group of Seven (G7) finance chiefs to support major banks amid the financial crisis, dealers said. |
| |
|
|
The dollar dipped against the euro on Monday, with investor confidence still muted despite a pledge by Group of Seven (G7) finance chiefs to support major banks amid the financial crisis, dealers said.. In late morning London trading, the euro climbed to 1.3622 dollars from 1.3394 dollars in New York late on Friday.. Against the Japanese currency, the dollar firmed to 100.61 yen from 100.51 yen on Friday.. Sterling rallied against the dollar after the British government said it would invest up to 37 billion pounds (47 billion euros, 64 billion dollars) in ailing British banks Royal Bank of Scotland, HBOS and Lloyds TSB.. G7 finance chiefs said on Friday in a joint statement they would use "all available tools" to support major banks and prevent their failure as part of efforts to shore up the ailing global financial system.. Finance ministers and central bankers from the United States, Germany, Japan, France, Britain, Italy and Canada met in Washington ahead of weekend gatherings of the Group of 20, the International Monetary Fund and World Bank.. "Markets have been impressed by the promises but the lack of clarity especially in the G7 statement may prove damaging unless it is clear that concrete action will be forthcoming," said Calyon analyst Mitul Kotecha.. "Expectations are running high and the risk is that markets could be disappointed as details emerge from individual countries over the coming hours and days.". Kotecha added: "It is crucial that governments are seen to deliver on promises with swift action.". Global stock markets surged on Monday, with 6.0 percent gains in Europe and 10 percent in Hong Kong, after world leaders agreed to pump billions of extra dollars into banks crippled by the credit crunch.. At the same time, central banks in Europe fired a new broadside to free up frozen lending, by providing commercial banks with unlimited amounts of dollars in a joint operation.. The Bank of England, European Central Bank and Swiss National Bank will loan dollars to commercial banks for periods of seven, 28 and 84 days.. In Paris on Sunday, governments from the 15 nations that use the euro promised to tackle the ongoing crisis together, buying into banks by taking preference shares and guaranteeing inter-bank lending to help increase liquidity.. The European Union and IMF stand read to help Hungary's government with financial support if needed after its currency, the forint, slumped last week, the EU said on Monday.. After the forint took a recent beating amid global financial market turmoil, the International Monetary Fund had offered Hungary "technical and financial assistance," the EU said in a statement.. In late morning trading in London, the euro changed hands at 1.3622 dollars against 1.3394 late Friday, at 137.17 yen (134.88), 0.7947 pounds (0.7857) and 1.5396 Swiss francs (1.5249).. The dollar stood at 100.61 yen (100.51) and 1.1294 Swiss francs (1.1376).. The pound was at 1.7160 dollars (1.7051).. On the London Bullion Market, the price of gold slid to 863.75 dollars an ounce from 900.50 dollars late Friday. — AFP
|
