Dollar stronger against euro after G7 meeting

Published: 25 May 2004 y., Tuesday
The dollar nudged higher against the euro and yen on Monday as investors focused on high oil prices, which took centre stage at a weekend meeting of Group of Seven financial leaders. The single European currency fell to $1.1952 in early European trading from 1.1993 late on Friday in New York. The dollar edged up to 112.63 yen from 112.41 on Friday. "Oil prices will remain in focus this week," said Michael Klawitter, analyst at West LB. G7 powers made no mention of the foreign exchange market in their statement on Sunday, calling instead on oil producers to boost production. "Low oil prices would be a benefit to the whole world economy," finance ministers of Britain, Canada, France, Germany, Italy, Japan and the United States said in a joint statement after talks in New York. G7 ministers said in the communique: "The summit is taking place at a time when the world economy is strong. "The recovery is proceeding rapidly, with global growth of around 4.25 per cent in 2003-04, the best growth rate in the world economy in the past 15 years," the ministers said. Financial markets were keeping a close eye on comments from Organisation of Petroleum Exporting Countries ministers gathering in Amsterdam for an energy forum. Saudi Arabia proposed that OPEC increase production by more than two million barrels per day, but other members of the cartel did not give it their immediate backing.
Šaltinis: jang.com.pk
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