News Column

US Dollar Settles Flat vs. Euro

Nov. 1, 2012
US Dollar

The U.S. dollar stayed flat against the euro after paring earlier losses on Wednesday as damage caused by Hurricane Sandy may weigh on the country's economic growth while news came from Europe were mixed.

The destructive Hurricane Sandy is estimated to bring large losses to insurance companies and hurt the economy, while there are also hopes that the reconstruction would increase domestic demand.

The Portuguese parliament will hold a budget vote on Nov. 27 while the Greek government Wednesday presented its budget with massive austerity plans in exchange for an international bailout, but the plan still needs to be approved by the parliament before implementation.

U.S. equity markets resumed trading on Wednesday with the major indexes little changed till late trading. The Labor Department said it would release the job data for October on Friday as scheduled, which has drawn investors' attention widely.

For the whole month, the euro gained around 0.9 percent against the dollar, mainly driven by speculations that Spain would ask for a financial bailout, which would enable the ECB to buy its debts. However, there is still no clear sign that Spain would take the action soon, and analysts believe the euro is unlikely to stay beyond the level of 1.3000, judging from current economic conditions in Europe.

The dollar rose about 2.5 percent against the yen for the whole month, the biggest monthly gain since February and largely because the easing moves taken by Japan's central bank.

In late New York trading, the euro stayed at the same level as the previous session at 1.2962, and the British pound climbed to 1. 6130 dollars from 1.6077.

The dollar declined to 0.9313 Swiss francs from 0.9323 but rose to 1.0002 Canadian dollars from 0.9996. The dollar bought 79.76 Japanese yen, higher than 79.60 in the previous session.

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Source: Copyright Xinhua News Agency - CEIS 2012


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