US dollar up versus euro, sterling

Story link: US dollar up versus euro, sterling

The US dollar had its biggest one-day gain versus the euro in two weeks on Thursday as worries rise that the US credit crisis will spread to Europe and that central banks there will have to hold interest rates steady or follow the lead of the US Federal Reserve and cut them.

In addition, an analysts’ report predicted that US credit concerns will ease in the months to come and the dollars recent declines, which have seen the greenback drop against most major currencies this year, will end.

The US currency was trading at $1.4766 to the euro at around noon in New York and by almost two p.m. it was at $1.4755 to the shared currency, while it took ¥109.7150 to buy a dollar.

In addition, the US dollar gained to $2.0640 to the pound in mid-day trade while it traded at $2.0631 to the pound by around two p.m.

Sterling’s declines had to do with the UK’s housing market, where prices were down to their lowest level in twelve years in November according to a report from the Nationwide Building Society while the Bank of England reported that fewer mortgages - only 88,000 - were approved in October than had been approved in nearly three years.

In afternoon trade in New York it took €1.3982 to buy a pound, while the yen traded at ¥226.3478 to the pound.