Foreign exchange markets reserved judgement on Greece's place in the euro and the overall solidity of the common currency project on Monday.» Read More
The British pound fell below $2 for the first time this month on Monday as thousands of depositors pulled money from U.K. lender Northern Rock. At the same time, the dollar was slightly weaker against most other currencies ahead of an expected U.S. interest rate cut.
The euro zone's trade surplus was smaller than expected in July, unadjusted data showed on Monday, but exports continued to grow more quickly than imports.
The dollar edged up against the yen and steadied against the euro Friday after soft data on U.S. consumers left traders scaling back currency bets ahead of an expected U.S. interest rate cut next week.
German Economy Minister Michael Glos said on Friday he feared the euro would remain strong and turbulence on financial markets would continue.
The dollar rebounded against the yen and euro Thursday as investors resumed buying the U.S. currency after nearly a week of declines, although expectations of a cut in U.S. interest rates capped gains.
The dollar fell to a record low against the euro on Wednesday as investors braced for the Federal Reserve to cut interest rates next week, rendering dollar-denominated assets less attractive to global investors.
The European Central Bank lent commercial banks 75 billion euros ($104 billion) in three-month funds Wednesday, 25 billion euros more than in a previous operation last month, the bank said on its Web site.
The dollar slid to near a record low versus the euro Tuesday, as traders bet a slowing U.S. economy will prompt a Federal Reserve rate cut next week, while the European Central Bank holds steady for some time.
The dollar fell near record lows Monday against the euro, weighed down by last week's disappointing U.S. jobs data and chances that an interest rate cut by the Federal Reserve is on the way.
The dollar slid to a 15-year low against major currencies Friday as data showed U.S. payrolls fell last month for the first time in four years, raising recession fears and pressure for the Federal Reserve to cut interest rates.
Euro-zone interest rates have further to rise, European Central Bank Governing Council member Axel Weber said on Friday, although other policymakers stressed no move is imminent given uncertainty over the credit crunch.
The eurozone finance ministers' chairman said on Friday French President Nicolas Sarkozy was neither noble nor correct to claim some of the credit for the European Central Bank's decision to keep interest rates on hold.
The European Central Bank kept its key monetary policy rate flat at 4% on Thursday due to persistent turbulence in the financial markets because of fears of a spillover of the U.S. subprime crisis.
Another rise in euro-zone interest rates looked assured last month, but the turmoil in the credit markets has brought pressure on European Central Bank President Jean-Claude Trichet to keep rates at 4%.
A sharp drop in investment and government spending more than halved quarterly euro zone growth for April to June, but this is unlikely to stop further ECB interest rate rises as analysts expect the economy to pick up.
The dollar steadied versus the euro and yen on Monday at the start of a busy week for U.S. data which should shed light on the extent to which the credit markets turmoil is taking a toll on growth.
The safe-haven flow that has stabilized the dollar recently should persist next week as investors remain wary of risky assets, extending August's pattern of credit market turmoil feeding global demand for U.S. Treasuries.
The dollar slipped against the yen Friday after President Bush and the head of the Federal Reserve both said they would not rescue speculators ailing from deteriorating lending conditions that could worsen.
Stocks are winding up for a higher open as traders focus on the Fed Chairman Ben Bernanke's Jackson Hole address and President Bush's expected subprime rescue plan for defaulting homeowners. Bernanke's 10 a.m. speech has been the buzz of global markets for more than a week and it is being watched carefully for any clues on how the Fed might react...
The yen rose modestly Thursday, recovering from the previous day's sharp decline, as investors continued a longer-term trend of reducing risky bets in response to troubled credit markets.