Dollar falls against major currencies

www.chinaview.cn 2008-04-12 05:25:20

New York, April 11 (Xinhua) --

The dollar fell against most major currencies on Friday after a disappointing profit report from General Electric surprised the market and investors doubted whether the G7 summit could bring stability to the financial market.

U.S. industrial conglomerate General Electric unexpectedly reported a nearly 6 percent decline in its first-quarter profit and slashed its earnings forecast for the full year. It was the first quarterly profit decline of GE since 2003.

The report sent GE shares down 10 percent and the broader market sharply lower on renewed worries about the health of both corporate profits and the weakening U.S. economy.

The finance ministers and central bank governors of the wealthyG7 nations have begun their closed door meeting in Washington on Friday afternoon with the stated goal of rebuilding confidence and stability in financial markets.

Economists said market fundamentals aren't right for the G7 to attempt coordinated currency intervention in an effort to end the dollar's slide.

Fears of a U.S. recession will keep the dollar vulnerable next week, especially against the yen and other Asian currencies, analysts said. Any sign of cracks in the euro zone economy may give it a boost against the euro.

The euro bought 1.5835 dollars in late New York trading compared with 1.5743 dollars it bought late Thursday. The British pound was unchanged at 1.9724 dollars.

The dollar fell to 0.9988 Swiss francs from 1.0081 Swiss francs, and fell to 101.01 Japanese yen from 102.04 Japanese yen. It rose to 1.0230 Canadian dollars from 1.0177 Canadian dollars.

Editor: Yan Liang

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