05-03-2008
US dollar stops fall against euro
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The fall of the US dollar against the European currency has halted.
According to reports, during late trading the value of the US dollar against the euro was lower than Monday's level of $1.528 (£0.77), readjusting to a rate of $1.521.
"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 (Skandinaviska Enskilda Banken), a firm specialising in private banking.
In related news, the value of sterling against the euro has fallen today (March 5th), with one euro now worth 76.87p.
The weakness of sterling is believed to be linked to the growing speculation over the future direction of UK interest rates - the Bank of England's monetary policy committee announces March's interest rate decision on March 6th.
"We expect the Bank of England to trim interest rates by a further 25 basis points to five per cent in May, but it could move in April if the economy appears to be slowing more sharply," said Howard Archer of Global Insight.