Sun, Sep 24, 2006 - Page 10 News List

Dollar regains balance after big selloff

AFP AND CNA , NEW YORK AND TAIPEI

The US dollar steadied on Friday a day after a big selloff as investors looked past a weak report on manufacturing that some analysts said could signal bigger problems for the world's biggest economy.

The euro stood at US$1.2783 at 9pm GMT from US$1.2779 late in New York on Thursday. The US dollar rose to ?116.51, compared with ?116.33 late on Thursday.

The greenback had fallen to two-week lows against major currencies earlier in the day in a continued response to Thursday's dismal Philadelphia Federal Reserve survey, which cemented market expectations that the next US interest rate move will be down.

The report may be remembered "as the turning point of the US economy as the release showed widespread economic weakness," Scotiabank analyst Mark Ellerbeck said.

Thursday's report from the Philly Fed "struck a chord with a market that is becoming increasingly sensitive to the prospect of a US slowdown," said Ian Gunner at Mellon Financial.

In late New York trade, the US dollar stood at 1.2361 Swiss francs after SF1.2431. The pound was being traded at US$1.8997 after US$1.9021 late on Thursday.

The US dollar gained ground against the New Taiwan dollar on Friday, rising NT$0.045 to close at NT$32.94. A total of US$1.01 billion changed hands during the day's trading.

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