Dollar Falls Versus Euro


The dollar fell against the euro as the U.S. Congress studies the government's $700 billion rescue proposal, with Federal Reserve Chairman Ben S. Bernanke saying a delay in passing the plan would hurt the economy.

The greenback also approached a one-month low versus the British pound before a report that economists forecast will show U.S. home sales dropped, bolstering the case for a Fed interest- rate cut. The Australian and New Zealand dollars weakened as prices for commodities the countries export declined.

The currency dropped to $1.4684 per euro at 12:38 p.m. in Tokyo from $1.4648 late yesterday in New York. It was at 105.66 yen from 105.56 yen. Against the pound, the dollar traded at $1.8544 from $1.8522. It reached a one-month low of $1.8642 on Sept. 22. The euro bought 155.16 yen from 154.63 yen.

The Australian dollar
fell to 83.43 U.S. cents from 84.40 cents late in Asia yesterday. New Zealand's dollar weakened 1.4 percent to 68.06 U.S. cents.

India's rupee
fell for a second day on speculation importers bought foreign currency to settle bills. The currency declined to the lowest since Sept. 18 as local refiners may have increased dollar purchases to pay for crude oil imports as the cost of the commodity rose. The nation imports almost three-quarters of the oil it uses. The rupee dropped 0.5 percent to 45.955 per dollar as of the 5 p.m. close in Mumbai.

Chinese yuan fell by the most in three weeks against the dollar on speculation China will limit currency gains as exports slow and global financial turmoil escalates.  The yuan dropped 0.15 percent to 6.8237 a dollar as of 5:30 p.m. in Shanghai, from 6.8135 yesterday, according to the China Foreign Exchange Trade System.

Russian's ruble
strengthened for a second day against the central bank's dollar-euro basket as a rebound in oil prices and a government emergency-funding plan bolstered Russian equities. Russia's currency rose 0.4 percent to 30.2338 against the basket by 6:05 p.m. in Moscow.

Brazil's real rose after Warren Buffett's Berkshire Hathaway Inc. agreed to invest $5 billion in Goldman Sachs Group Inc., easing concern U.S. financial market weakness will hurt higher-yielding, emerging-markets assets. The real rose 0.8 percent to 1.856 per dollar at 3:26 p.m. New York time, from 1.8465 yesterday.


TradingEconomics.com, Bloomberg.com
9/24/2008 12:32:52 PM