Dollar dips as euro strongly rebounds

12:14, October 02, 2010      

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The U.S. dollar slipped against major currencies in late New York trading on Friday as the euro rebounded strongly and fear on Fed's intervention still lingered.

The euro against the dollar hit a six-month high on Friday's early trading session. The pair topped the barrier level of 1.3692, which it touched in April. Traders said the next critical level was 1.3800, if the pair could break through that barrier, the euro might gain more.

The Commerce Department said on Friday that U.S. construction spending rose 0.4 percent in August, following a revised 1.4- percent decrease in July. However, a weak U.S. manufacturing survey offset its positive effect. The Institute for Supply Management said its index of national factory activity fell to 54. 4 in September, from 56.3 in August.

The concern on Fed's move still lingered in the market, following a series of depressing economic data.

According to some market players, some Asian central banks were selling the dollar and buying the euro to adjust their foreign exchange reserve's structure, which pressured the greenback.

The dollar against yen slid near 83.26, close to the level that Japanese government intervened on Sept. 15. Japanese Finance Minister Yoshihiko Noda said on Friday he would take decisive steps on currency moves if necessary.

In late Friday trading, the dollar bought 83.37 Japanese yen compared with 83.40 late Thursday, and the euro rose to 1.3780 dollars from 1.3643.

The British pound also rose to 1.5835 dollars from 1.5716. The dollar fell from 0.9816 to 0.9753 against Swiss francs, and fell to 1.0191 Canadian dollars from 1.0279.

Source: Xinhua


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