NEW YORK, Nov. 28 (Kyodo) — (EDS: CHANGING DATELINE & UPDATING WITH N.Y. TRADING)
The euro soared to an all-time high against the dollar on Friday in New York, temporarily climbing to $1.2013, in reaction to a similar trend in London.
The euro also strengthened against the yen.
At 9 a.m., the euro was quoted at $1.1995-1.2005 and 131.30-40 yen. The dollar was quoted at 109.40-50 yen.
Earlier in the day, the euro surged to a lifetime high against the dollar in London, rising above $1.20 for the first time since its launch in January 1999.
At 1 p.m., the euro was quoted at $1.1990-2005, compared with $1.1927-1930 at 5 p.m. Friday in Tokyo.
The euro rose as high as $1.2018 shortly after midday at one point as euro buying outpaced euro selling from the onset of trading Friday, dealers said.
They cited dollar selling by hedge funds as one factor behind the euro’s strength.
Some dealers also pointed to renewed concern about the situation in Iraq after U.S. President George W. Bush’s surprise visit to Baghdad.
A dealer at a Japanese bank in London said, ”The market is caught in bearish sentiment on the dollar amid concerns about trade protectionism and terrorism because the dollar did not react to economic data that point to a recovery of the U.S. economy.”
Dealers said there is no particular incentive to buy the euro because the euro-zone economy lags behind the United States and Japan in economic recovery.
”The euro was bought by a process of elimination,” one dealer said.
