Dollar shakes off Greenspan caution

The dollar pushed back against the euro and yen today, shaking off cautious comments from US Federal Reserve chairman Mr Alan…

The dollar pushed back against the euro and yen today, shaking off cautious comments from US Federal Reserve chairman Mr Alan Greenspan.

The single European currency fell back to $0.8928 from $0.8943 in Asian trading earlier today.

The dollar slipped to Yen 131.73 from Yen 131.85 in Asia, where trading was light with the Tokyo market shut for a public holiday.

The US currency was initially under pressure after Mr Greenspan gave a sober assessment late Friday of prospects for a swift recovery in the world's largest economy, warning it faced "significant risks in the near term".

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His comments were seen as leaving open the possibility of another cut in US interest rates.

The dollar will remain in focus this week as dealers digest a flurry of US economic data, including US retail sales for December to be published tomorrow.

The euro was being traded at $0.8928 dollars from $0.8922 in New York late on Friday, at Yen 117.60 (117.93), £0.6164 (0.6159) and 1.4780 Swiss francs (1.4798).

AFP