AFP: U.S. dollar slips against euro despite G-7 support in crisis
LONDON/TOKYO –– The dollar dipped against the euro on Monday, with investor confidence s
till muted despite a pledge by Group of Seven (G-7) finance chiefs to support major banks amid the financial crisis, dealers said.
In late morning London trading, the euro climbed to US$1.3622 from 1.3394 in New York late on Friday.
Against the Japanese currency, the dollar firmed to 100.61 yen from 100.51 yen on Friday.
Sterling rallied against the dollar after the British government said it would invest up to 37 billion pounds (euro47 billion, US$64 billion) in ailing British banks Royal Bank of Scotland, HBOS and Lloyds TSB.
In late morning trading in London, the euro changed hands at US$1.3622 against 1.3394 late Friday, at 137.17 yen (134.88), 0.7947 pounds (0.7857) and 1.5396 Swiss francs (1.5249).
The dollar stood at 100.61 yen (100.51) and 1.1294 Swiss francs (1.1376). The pound was at US$1.7160 (1.7051).
On the London Bullion Market, the price of gold slid to US$863.75 an ounce from 900.50 late Friday.
Hong Kong gold prices closed lower on Monday at US$861.00-863.00 an ounce, down from Friday’s close of 926.00-927.00. It opened at US$860.00-862.00.
In afternoon trading, the dollar was at 100.28 yen, down from 100.51 yen in late Friday trading in New York. Financial markets in Japan are closed for a public holiday and will reopen Tuesday.
At one point during Monday trading, the dollar dipped briefly below the 100-yen level to 99.77.
The euro was changing hands at US$1.3551, up from 1.3394 in New York late Friday.
Against other Asian units, the dollar rose to 9,875 Indonesian rupiah from Friday’s close at 9,758 but fell against the rest of the currencies.
It fell on Monday to 47.43 Philippine pesos from 47.79 on Friday, to NT$32.41 from 32.46, to 34.28 Thai baht from 34.43, to S$1.4733 from 1.4835 and to 1,235.775 South Korean won from 1,338.65.
The Australian dollar has fallen more than 14 percent in the past week to new five-year lows. It was trading late Monday at 0.6584 to the U.S. dollar, compared with 0.7750 on October 6.
