Euro gains on dollar on EU support
The euro gained ground against the dollar Tuesday after ECB President Jean-Claude Trichet called for calm in the markets, and stressed the bank stood ready to provide liquidity for as long as necessary.
The 15-nation euro bought $1.3577 in early trading, up from $1.3457 late Monday in New York.
Speaking in Luxembourg Monday while European Union finance ministers discussed rules for guaranteeing all private savings, Trichet appealed to "all actors on the stage to shoulder their responsibilities and be calm."
He said many private credit holders may be overestimating real risks - which "makes it very difficult for money markets to function."
European Union leaders also tried to reassure markets, saying they would take "all necessary measures" to keep the financial system stable (pay day loan).
That would include liquidity from the central banks, targeted measures for individual banks or a reinforcement of bank deposit guarantees, France’s EU presidency said in a statement that allows each country a wide range of options.
The European Central Bank, the Bank of England, the Swiss National Bank and other central banks around the world have provided steady streams of liquidity to markets in past weeks to keep the financial sector flush.
In other trading, the British pound bought $1.7541 Tuesday, compared with $1.7388, while the dollar bought ¥102.72, compared with ¥100.56 late Monday in New York.
Filed under: business by Fred