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Dollar Firms, Buoyed by Economic Data Part Two


Fri January 30, 2004 11:14 AM ET
(Page 2 of 2) Financial markets interpreted that shift in language as a signal that the Fed was nearer a rate hike than had been previously thought, giving the dollar a boost and sending both stocks and U.S. Treasuries downward. Official U.S. interest rates remain at 1 percent, their lowest since 1958.

Business conditions in New York City improved for a fifth straight month in January, boosted by a pick-up in the tourism and banking industries, a report published on Friday showed.

The National Association of Purchasing Management index of economic activity in the Big Apple climbed to 257.3 in January from 242.6 in December.

Earlier in the trading day, the greenback softened a touch on news Japan intervened in record amounts of about $67.56 billion in January in an attempt to stem the yen's rise against the dollar from crimping exports, but still couldn't stop the yen from hitting three-year highs earlier this month.

Against the Japanese currency, the dollar declined to 105.72 yen (JPY=: Quote , Profile , Research ) , not far above this week's three-year low around 105.42 yen, according to Reuters data.

(Additional reporting by John Parry in New York)

 

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Treasuries Up as Growth Falls Short

Treasuries Up as Growth Falls Short part two

 

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