Dollar Slips As Fragile Confidence Overrides Wall Street

London, July 25: | Updated: Jul 26 2002, 05:30am hrs
The dollar fell across the board on Thursday, probing below parity with the euro briefly as a dramatic rebound on Wall Street proved insufficient to shake off doubts about US asset returns and the greenback’s downtrend. US stocks surged on Wednesday with the broad market chalking up its biggest gain since October 1987 as investors stampeded back to buy stocks at prices cut down to multi-year lows after three weeks of relentless declines.

“Last night, most stock buying came out of the US. You don’t see foreigners regaining confidence in the US market just yet, and we are not out of the woods yet,” said Ms Rebecca Patterson, currency strategist at JP Morgan. The dollar had hit a low of $1.0016, two cents off its 2.5 year trough set last week, before recovering slightly to $0.9985.

Reuters