Hat-trick puts shine on the dollar
Friday 27 October 1995
In a classic safe-haven reaction to the threat of political uncertainty in Russia, the currency markets sold marks and bought dollars. They also reversed some of the lira's recent losses against the mark caused by uncertainty about Italian politics and government finances.
Jeffrey Wu, currency trader at Sanwa Bank in New York, said: "The market is definitely reacting to the Yeltsin hospitalisation. Investors worldwide are selling marks because Germany is so close to Russia and is Russia's largest trading partner."
The US currency's advance against the mark was aided by a recovery in the lira. The improved chance of the Italian government surviving a vote of no confidence after Communist deputies said they would abstain took the lira higher against the mark during the day. The lira recovered to L1,142.9 to the mark from L1,159 on Wednesday, while share prices in Milan soared 2.5 per cent.
The third element in yesterday's dollar hat-trick was news of a strong increase in orders for durable goods placed with US factories in September.
The dollar lost some gains after its initial reaction to the flurry of news, but by noon in New York it was trading at DM1.3939 and 101.46, up from DM1.3922 and 101.24.
- 1 Reader dilemma: 'Our son is 34 with an IQ of 85, and spends all his time in his room. What will happen to him when we're no longer here?'
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Russian officials ban yoga because it's too much like a religious cult
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Ginger Pride festival to take place next summer, organisers say 'time of bullying gingers is over'
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
German ethics council calls for incest between siblings to be legalised by Government
People are American flagging their Facebook profile pictures in response to those rainbow flagging them
Ginger Pride festival to take place next summer, organisers say 'time of bullying gingers is over'
Historic meeting between Pope Francis and Russian Orthodox head 'getting closer'
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
Tunisia beach attack: How can British Muslims respond to the latest outrages?
iJobs Money & Business
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...