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The dollar gained a bit more solid ground against the euro currency on previous week’s Friday after a strong U.S. data suggested that the Fed may not need to act further more to cut interest rates, something that would have lowered the yield on dollar-denominated investments.
In afternoon New York trading the euro bought $1.4425, down nearly 2 U.S. cents from $1.4624 the night before. The British pound went down to $2.0154 from $2.0387 in New York, while the dollar currency went through to purchase 113.42 Japanese yen from 112.20 yen the night before that.
The U.S. currency rose to 1.1533 Swiss francs from 1.1413 francs, and fell to 1.0187 Canadian dollars from 1.0207 previous week’s Thursday.
United States consumer inflation surged by the huge amount that came for more than two years in November
This led by gas prices.
Earlier the Fed had to cut some of the rates by less than quarter point something that definitely was not expected, but the strong pricing report may have suggests that the Fed may not feel as inclined to check the rates and maybe cut them again in order to keep inflationary pressures while checking. That would surely keep the dollar's yield relatively strong and stable compared with those of other currencies such as GBP and Euro.
16:08
Posted on Dec-16-2007
