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The euro continued to fall against the dollar Thursday, traders fleeing from risky investments to seek refuge from ...
The euro continued to fall against the dollar Thursday, traders fleeing from risky investments to seek refuge in safe securities such as gold, in a market shaken by concerns about a possible return to recession in the U.S. economy.
Around 1600 GMT (1800 Paris), the euro bought 1.4320 dollars against 1.4428 dollars at 2100 GMT Wednesday.
The euro fell against the yen at 109.59 yen against 110.45 yen yesterday.
The dollar stabilized against the Japanese currency to 76.52 yen against 76.54 yen on Wednesday after briefly resumed its decline.
Investor concerns about the health of the U.S. economy were exacerbated by the announcement Thursday of a collapse in August of manufacturing activity in the Philadelphia area (Northeast U.S.).
The index of the local branch of the U.S. central bank (Fed) dropped by nearly 34 percentage points from July, reaching -30.7, its lowest level since March 2009 when the U.S. was still in recession.
"Obviously, the markets are living in fear, and figures like that give them reason to panic," commented analyst at ING.
For its part, the euro remained under pressure from the debt crisis in the euro area and its impact on financial markets.
The nervousness of traders had been fueled by lowering Thursday by the U.S. investment bank Morgan Stanley to its growth forecasts for the global economy. For Morgan Stanley, the U.S. and the eurozone are "dangerously close to recession".
Because of the uncertainty that still hangs over the markets of both sides of the Atlantic, investors continued to seek refuge with values considered safe as gold, yen and Swiss franc.
The ounce of gold has reached a new high Thursday at 2:05 p.m. GMT, to 1826.10 dollars, increasing by more than a record $ 10 a week old.
The yen also approached its highest level since the Second World War against the dollar, recorded March 17 at 76.25 yen to the dollar, and he came close last Thursday (76.31 yen).
For its part, the Swiss National Bank (SNB) decided Wednesday to step up measures to counter the strong Swiss franc, another safe haven, with a third operation in 15 days of injection of liquidity into the financial system, measures that allowed the Swiss franc to limit its gains on Thursday.
But analysts at Commerzbank, where Swiss officials "want to fight the high cost of the franc today, they must act more decisively and quickly."
So to many observers, the Swiss franc could continue to be supported as new measures, as a possible temporary stowage of the franc to the euro, will not be.
By 1600 GMT, the Swiss franc rose against the euro at 1.1320 Swiss francs, and stabilized against the dollar at 0.7906 francs after a brief return up.
The British pound rose against the euro at 86.85 pence, but retreated against the dollar at 1.6486 dollar.
The ounce of gold finished at 1,824 dollars at auction Wednesday night against 1790 dollars.
The Chinese yuan ended at 6.3883 yuan against one dollar for 6.3872 yuan yesterday.
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