20 April 2001, 16:34 US FX Daily Outlook: Dollar trims losses vs European currencies
By Cornelius Luca
New York, April 20 (BridgeNews) - The greenback trimmed losses versus
the major European currencies and advanced against the Japanese yen mostly
on profit taking before the weekend. The dollar's rebound from a five-week
low of 120.90 yen was linked to Japan's Finance Minister Kiichi Miyazawa's
comments that seemed to indicate he favored a trading range of 120 to 125.
* * *
Euro/dollar and sterling/dollar gave up most of their profits after
climbing to 11-day highs of 0.9022 and 1.4481, respectively, while
dollar/Swiss franc replicated with a bounce from an 11-day low of 1.6977.
Dollar/Canada remains weak after extending Thursday's losses on long
liquidation to a new five-week low of 1.5435. The pair was neutral to the
Canadian CPI data, which rose 0.3% on the month in March and was up 2.5%
from a year earlier. The core rate rose 0.1% on the month and 1.7% from a
year earlier.
In an exclusive interview with CNBC, U.S. Treasury Secretary Paul
O'Neill repeated his strong dollar mantra, but was refused to enter in a
debate about what Europe should or should not do.
The U.S. traders will likely continue to buy dollars ahead of the
weekend.
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