Dollar rises after European growth warning

www.chinaview.cn 2008-01-17 10:48:30 Print

NEW YORK, Jan. 16 (Xinhua) --

The U.S. dollar rose against the euro and other major currencies Wednesday after a European Central Bank official cast a note of warning on European growth.

European Central Bank council member Yves Mersch said the bank should exercise caution as risks to economic growth mount, prompting investors to bet the ECB is shifting its stance toward a cut in interest rates.

The ECB decided to keep key rates unchanged last week. Investors had speculated that the bank may raise rates later this year to combat inflation in the euro zone.

The dollar has benefited indirectly from the comments by Mersch suggesting no rate hike from the ECB any time soon, analysts said.

The euro was at 1.4661 dollars late in New York, down from 1.4833 dollars Tuesday. The pound slipped to 1.9642 dollars from 1.9644 dollars.

The dollar gained to 107.60 yen, above the 107.07 yen it was worth Tuesday. It rose to 1.1010 Swiss francs from 1.0913 Swiss francs and 1.0234 Canadian dollars from 1.0165 Canadian dollars.

Editor: Du Guodong

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