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Saudi attacks weaken dollar's footing

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  • Vigilius Haufniensis
    http://www.busrep.co.za/index.php?fArticleId=2096271 Saudi attacks weaken dollar s footing May 31, 2004 Paris - The dollar suffered from news of the killings
    Message 1 of 1 , May 31 12:21 PM
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      Saudi attacks weaken dollar's footing
      May 31, 2004

      Paris - The dollar suffered from news of the killings in Saudi Arabia over the weekend, said to have been caused by Al-Qaeda, as traders sold the currency to move into others seen as safer investments.

      In Paris the euro was being traded at $1.2215 from $1.2213 four hours earlier and $1.2223 late on Friday.

      The dollar was at ¥109.38 from ¥109.53 earlier and ¥109.97 on Friday.

      Trading was quiet because big banks in London were closed for a holiday, as were several markets in Europe. New York markets were also closed for a holiday.

      Twenty-two foreign nationals were killed by four gunmen who attacked two oil company office blocks in the Saudi Arabian city of Al-Khobar.

      Heightened prospects of further such attacks and possible disruptions to Saudi Arabian oil supplies weighed heavily on the dollar and pushed the price of crude oil higher.

      "The dollar's wider decline was primarily driven by returning risk-aversion," BNP Paribas brokers said.

      In Asia the dollar remained at three-week low points against the yen following the attacks in Saudi Arabia and renewed concern about high oil prices, dealers said.

      The dollar was at ¥109.73 in afternoon Tokyo from ¥109.97 in New York late on Friday. The euro eased to $1.2210 from $1.2223 and fell to ¥133.97 from ¥134.70.

      In Europe, safe-haven flows out of the dollar were much in evidence although thin trading conditions given the public holiday in Britain and the US were also having an impact, analysts said.

      Traders are concerned about high oil prices and are waiting to see if the Organization of Petroleum Exporting Countries takes decisions to increase oil supplies when it meets in Beirut on Thursday.

      The euro was at $1.2215 from $1.2223 in New York on Friday, at ¥133.60 from ¥134.70, £0.6655 sterling from £0.6666 and at 1.5298 Swiss francs from 1.5301.

      The dollar was at 109.38 yen from 109.97 and at 1.2525 Swiss francs from 1.2516.

      Sterling was at $1.8353 from $1.8322, ¥200.75 from ¥201.48 and 2.2987 Swiss francs from 2.2937. - AFP

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