Friday October 19, 2007 - 23:04:34 GMT
Share This Story
Reuters - www.reuters.com
FOREX NEWS-Dollar index drops to fresh low after DJ report
(Updates prices, adds comment)
By Gertrude Chavez-Dreyfuss
NEW YORK, Oct 19 (Reuters) - The dollar fell a record low against a basket of major currencies on Friday after Dow Jones reported that a draft communique from the Group of Seven meeting this afternoon failed to mention the euro, yen, and the greenback.
There had been some speculation earlier that the G7 statement late on Friday could address the dollar's weakness and other currency imbalances. But the omission of any such reference from the draft statement suggested that the dollar's weak trend will continue, analysts said.
"It's not very surprising since no one was really expecting a big change," said a dealer at a New York bank.
Contrary to some expectations, the draft statement instead focused on the tightly-controlled Chinese yuan, as G7 officials urged for a faster rise in the currency. It also repeated past statements, which called for currencies to reflect economic fundamentals. See [ID:nN19350446].
The dollar index, a gauge of the greenback's value against a basket of major currencies, fell to yet another record low at 77.396 (.DXY: Quote, Profile, Research), down 0.2 percent on the day. The dollar also dropped to 114.68 yen <JPY=>, still the lowest in three weeks after the Dow Jones story. It last traded at 114.72 yen, still down 0.6 percent on the day.
(Additional reporting by Kevin Plumberg. Editing by Richard Satran))
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."