Euro Falls to `10-Year Low' on Setback In Kosovo, U.S. Interest-Rate Outlook

Battered by a setback in negotiations to end the war in Yugoslavia and prospects of higher U.S. interest rates, the euro tumbled to the equivalent of a 10-year low against the dollar. Before recovering a little on profit-taking, the euro fell to $1.0326, which is equivalent to 1.8941 marks. The last...

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Bibliographic Details
Published inThe Wall Street journal. Eastern edition
Main Author By Michael R. Sesit and Dagmar Aalund
Format Newspaper Article
LanguageEnglish
Published New York, N.Y Dow Jones & Company Inc 03.06.1999
EditionEastern edition
Subjects
American dollar
Central banks
Eurozone
Foreign exchange money reports
Interest rates
Presidents
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Summary:Battered by a setback in negotiations to end the war in Yugoslavia and prospects of higher U.S. interest rates, the euro tumbled to the equivalent of a 10-year low against the dollar. Before recovering a little on profit-taking, the euro fell to $1.0326, which is equivalent to 1.8941 marks. The last time the mark -- regarded as Europe's benchmark currency before European economic and monetary union -- was this weak was Aug. 6, 1997. At that time, it traded at 1.8910 to the dollar, an eight-year low. For one, it makes goods made in the 11 euro-zone countries more competitive on world markets, which in turn gives a boost to economic growth at a time countries such as Germany, France and Italy need it. "A depreciating euro will help Germany when little else is helping Germany," said Klaus T. Said, global head of foreign exchange at J.P. Morgan & Co.
ISSN:0099-9660