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| Version 1 | Version 2 |
|---|---|
| Dollar halts decline against euro | Dollar halts decline against euro |
| (about 10 hours later) | |
| The dollar has halted its decline against the euro ahead of a eurozone interest rate decision on Thursday. | The dollar has halted its decline against the euro ahead of a eurozone interest rate decision on Thursday. |
| The European Central Bank (ECB) is unlikely to cut rates below 4%, analysts said, but hints of future cuts could prompt euro weakness. | The European Central Bank (ECB) is unlikely to cut rates below 4%, analysts said, but hints of future cuts could prompt euro weakness. |
| The ECB expressed concern on Monday about the effects of the strong euro on the region's cooling economy. | The ECB expressed concern on Monday about the effects of the strong euro on the region's cooling economy. |
| One euro was worth $1.521 by late trade in New York, slightly off the all-time high of $1.528 seen on Monday. | |
| One euro bought 76.58 pence. At one point it on Monday bought 76.78p, an all-time high. | |
| Exporter fears | Exporter fears |
| Since the beginning of last week, the dollar has fallen against the euro as analysts forecast steeper rate cuts in the US - whose economy has been hit by the sub-prime credit crisis - than in the eurozone. Higher interest rates can make eurozone assets relatively more attractive to investors. | Since the beginning of last week, the dollar has fallen against the euro as analysts forecast steeper rate cuts in the US - whose economy has been hit by the sub-prime credit crisis - than in the eurozone. Higher interest rates can make eurozone assets relatively more attractive to investors. |
| On Monday, the ECB president Jean-Claude Trichet expressed concerns about the rising euro amid fears that the currency's strength could damage European exporter profits. | On Monday, the ECB president Jean-Claude Trichet expressed concerns about the rising euro amid fears that the currency's strength could damage European exporter profits. |
| This view was echoed by a group of eurozone finance ministers. | This view was echoed by a group of eurozone finance ministers. |
| Analysts interpreted the comments as a call to the US to prevent further declines in its currency but did not see the comments as a precursor to immediate intervention in the currency market. | Analysts interpreted the comments as a call to the US to prevent further declines in its currency but did not see the comments as a precursor to immediate intervention in the currency market. |
| "The market hasn't completely re-evaluated the situation based on these statements, but they have taken the edge off some of the euro strength we have seen recently," said Johan Javeus, a foreign exchange strategist at SEB. | "The market hasn't completely re-evaluated the situation based on these statements, but they have taken the edge off some of the euro strength we have seen recently," said Johan Javeus, a foreign exchange strategist at SEB. |