| Author | Message | ||
     Ashton Comedian Username: Ashton Post Number: 1068 Registered: 05-2008 Posted From: 76.191.100.11 Rating: N/A |
http://www.reuters.com/article/usDollarRpt/idUSN224778222009 0522 U.S. dollar falls to 2009 low as rating worries persist * Government debt slides as investors sour on U.S. outlook * U.S. stocks rise on dollar play over multinationals * Oil slips below $61 on worries about U.S. fiscal outlook (Updates with U.S. markets activity; changes dateline, previous LONDON) By Herbert Lash NEW YORK, May 22 (Reuters) - The U.S. dollar dropped to its lowest level this year and government bonds fell further on Friday as concerns mounted about rising U.S. debt levels after investors questioned the strength of its AAA credit rating. The dollar, on track for its biggest weekly fall in two months, took the brunt of growing worries about the U.S. fiscal outlook after Standard & Poor's on Thursday said it might cut Britain's AAA credit rating because of soaring public debt. Oil slipped below $61 a barrel on credit worries related to the United States, the world's top energy consumer, but losses were limited by data suggesting Chinese oil demand jumped 3.9 percent in April. For details: [ID:nPEK35187] Yet U.S. stocks rose as investors snapped up shares of multinationals, including McDonald's Corp, in anticipation a weaker dollar would underpin profitability from abroad. A leading index of European shares ended lower for a second day in a row even as benchmark indexes in Britain, Germany and France ended higher. Gold prices climbed to a fresh two-month high, breaching $960 an ounce for the first time since late March, as the dollar's slide boosted buying of bullion as a currency hedge. "The general theme today is clearly broad-based U.S. dollar weakness, largely triggered by mounting concerns over the U.S. government debt triple-A rating," said Omer Esiner, senior market analyst at Travelex Global Business Payments in Washington. Shares of energy companies on both sides of the Atlantic rose, helping boost the broader U.S. and UK equity markets on bets that overseas demand would support energy prices. A weaker dollar can make U.S. assets more appealing to some investors, and multinationals benefit when they convert overseas earnings into dollars. Trading volumes were thin ahead of long U.S. and British public holiday weekends. |
