London, Oct 27: Expectations of interest raterises on both sides of the Atlantic dominated markets on Wednesday after robust euro zone money supply data and yet another US fed official calling for caution on the economy.Wall Street opened slightly higher, lifting European bourses off lows, as concerns over increases in interest rates vied for sentiment with euphoria over strong corporate profits.
But the euro sank to a one-month low against the dollar as markets tired of betting European interest rates would rise, with attention turning to US third quarter growth figures due on Thursday for indications of the Federal Reserve's next move.
Federal Reserve Bank of Boston President Cathy Minehan on Wednesday warned against excessive "zeal and over-confidence" in the US economy and said vigilance was needed to prevent overheating, echoing comments by other Fed officials on Tuesday.
The euro was fluttering around a session low of $1.0531 and also slipped to fresh four-week lows against the yen, falling as low as 109.67 yen.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.