Currencies: Is Anybody Going to Help Out This Euro or What?

By Dan Bernstein ,

Confusion about possible central bank intervention to support the eurozone's single currency has left the coin middling against the dollar, barely off a new six-month low it hit against the U.S. currency earlier today.

Traders' ongoing belief that the

European Central Bank

might intervene in the foreign exchange markets by buying euros to boost its price has intermittently edged the currency higher recently. But high-level financial officials in both the eurozone and Japan have denied any intervention inclination, which has sent the euro tumbling back downward.

The effect of the confusion has left the euro trading for $0.8468 most recently, barely off yesterday's closing price of $0.8463. The euro gained back a bit of strength in trade against the yen, climbing recently to 101.67 yen per euro, from yesterday's close of 100.94 yen per euro.

The dollar is also gaining on a weakening yen today, recently posting a value of 120.09 yen per dollar in trade. The dollar closed yesterday's market trading for 119.29 yen.

The ECB seems more concerned with the rate of the euro's recent decline rather than its actual decline in value.

Italy's outgoing prime minister,

Giuliano Amato

, said the strength of the euro will not become apparent until the hard currency is introduced into circulation at the start of 2002.

Economic data out of the eurozone this morning had little effect on currency prices. The EMU-12 Producer Price Index rose 0.3% month-over-month in May, and 4.1% year-over-year for the same month; both increases were expected.

The dollar, meanwhile, was gaining ground against the rest of the major currency players, although by minimal margins. The British pound fell recently to a price of $1.4113 from $1.4142 at last close. The Australian dollar was just marginally off of yesterday's closing price of $0.5077 against the U.S. currency, trading most recently for $0.5075.

The U.S. dollar strengthened slightly against its Canadian counterpart, as the U.S. currency recently traded for C$1.5370, a little higher than yesterday's close of C$15362.

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