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Euro gives up a little ground against dollar, but still above US$1.50

Euro gives up a little ground against dollar, but still above US$1.50

The euro retreated slightly from its new all-time high against the dollar Thursday, but remained above US$1.50 amid persistent gloom about the U.S. economy.
The 15-nation euro bought US$1.5090 in early European trading _ down from US$1.5120 in New York the previous night and from its new record of US$1.5143, set earlier in Wednesday's session.
The British pound declined to US$1.9771 from US$1.9842. The dollar dipped to 106.38 Japanese yen from 106.45 yen.
"An arguably oversold dollar is recovering some territory ... but the greenback remains well above that key psychological level of 1.50 against the euro," said Gary Thomson, head of sales trading at CMC Markets.
"With sentiment becoming increasingly pessimistic as to the outlook for the U.S. economy, it seems as if it will take a notable shift in sentiment if we're to see any real recovery," he added.
The euro topped US$1.50 for the first time since its 1999 introduction early Wednesday, then surged above US$1.51 after markets took comments from the Federal Reserve chairman as a sign that yet more U.S. rate cuts are on the way.
Fed Chairman Ben Bernanke said that "the economic situation has become distinctly less favorable" since last summer.
Lower interest rates can jump-start a nation's economy, but can weigh on its currency as traders transfer funds to countries where they can earn higher returns.


Updated : 2021-07-24 14:04 GMT+08:00