January 4, 2002	Friday	Shawwal 19, 1422

LONDON, Jan 3: A euro rally inspired by the physical launch of the currency petered out on Thursday, as a more sober tone crept into foreign exchange dealing after the ‘europhoria’ surrounding the launch of euro notes and coins.

Sterling in particular was able to pull out of a steep slump against the single European currency, as investors reassessed whether the historic birth of euro notes and coins really was likely to encourage Britain to join the euro-zone.

The euro was quoted at $0.9014, having peaked at 0.9063 on Wednesday. It also bought 118.89 yen, from 119.38 earlier in Tokyo.

Sterling was going for 1.6033, having fallen as low as 1.5958 on Wednesday. The dollar bought 131.88 yen from 132.14 earlier.

History was slowly giving way to reality on foreign exchange markets, as the sheen of the newly-minted euro gradually began to fade. Strong US data hinting at perkier business activity on that side of the Atlantic gave the dollar a second wind.

The euro gains every new year, it is almost a seasonal factor, he said.

Sterling meanwhile was pausing for breath on Thursday after sustaining its worst ever one-day slump against the euro on Wednesday.—AFP