Saturday, 8 November 2008

Euro, pound edge higher against dollar

FRANKFURT, Germany (AP) — The euro and the pound both edged higher against the dollar in trading Friday, a day after the Bank of England and European Central Bank cut interest rates for the second time in less than a month.

The ECB cut its key rate by half a percentage point to 3.25 percent shortly after the Bank of England lowered its key interest rate by a startling 1.5 percentage points to 3 percent.

In morning European trading, the 15-nation euro bought $1.2830, up from $1.2735 late Thursday in New York. The British pound slipped to $1.5784 from $1.5753. That reversed Thursday's declines in the wake of the rate cuts.

Lower interest rates can help prompt economic activity, but also typically drive investors away from a currency as they seek higher returns elsewhere.

In other trading Friday, the dollar dropped to 97.45 Japanese yen from 97.82 yen.

1 comment:

s said...

ohhhhhh this the second time in less than a month.

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