The U.S. currency was weakening against the euro and the yen Monday following the announcement of
Bank of America
One euro was buying $1.594 recently, up from $1.58 on Friday. The dollar was worth 103.2 Japanese yen, down from 103.9 yen previously.
The BofA news raises further concerns that the continuing troubles in the banking sector will spread to the wider economy and slow growth in the U.S. As a result, the
will probably lower rates again, many analysts believe. That could mean lingering pressure on the greenback.
The British pound, however, was slipping in value against the dollar, with one pound selling for $1.9832 vs. $1.9933 in the prior session. The Bank of England, Britain's equivalent of the Fed, said it will swap high-grade mortgage-backed securities for government issued treasury bills in an effort to ease the credit crisis.
The currency exchange-traded funds were following action in the wholesale foreign-exchange market. The
CurrencyShares Euro Trust
CurrencyShares Japanese Yen Trust
were rising 0.8% and 0.2%, respectively.
CurrencyShares British Pound Sterling
was off 0.6%.
In the metals market, gold prices were rising, driven up by the weaker dollar and the added financial uncertainty surrounding the problems at BofA. Benchmark bullion futures were tacking on $5.60 at $920.80 an ounce in recent action on the Comex division of the New York Mercantile Exchange.
The biggest of the bullion exchange-traded funds,
streetTracks Gold Shares
, was steady.
As for the precious metals patch, shares of
were tumbling 6.9% following new legislation in Ecuador that temporarily suspends large-scale mining exploration, according to an announcement by the firm.
were lower by 1.2%, pulled down by the general market despite the relative strength in metal prices.