18 hours ago
NEW YORK (AP) — The dollar rose against major currencies Thursday as markets grapple with worries that tight lending will throw the global economy into a recession.
The 15-nation euro fell to $1.3661 in late New York trading from $1.3680 it bought late Wednesday. The British pound slid to $1.7197 from $1.7292, while the dollar advanced to 100.48 Japanese yen from 100.31 yen.
Wall Street had begun the day higher on news that the Bush administration is considering taking part ownership in a number of U.S. banks. But the Dow Jones industrials plummeted more than 675 points to end below 9,000, its lowest level in five years, on a wave of fear about the world economy.
The Fed and other leading central banks this week lowered key interest rates to help unclog the credit markets and promote lending to help the global economy. Cutting interest rates can stimulate economic growth and help restore confidence to markets, but doing so may undermine a currency as investors look for better returns elsewhere. The U.S. rate is now the second-lowest among the majors, higher only than Japan.