October 25, 2007	Thursday	Shawwal 12, 1428

LONDON, Oct 24: The dollar weakened against the yen but was little changed versus the euro on Wednesday, weathering weaker-than-expected US housing data and a massive provision at investment banking giant Merrill Lynch, dealers said.

They said the dollar had been firmer earlier in the day but players were rightfully cautious ahead of data showing US existing home sales down 8.0 per cent in September, much worse than had been forecast.

Dealers said the combined news showed that the costs of the fallout from the collapse in the US sub-prime mortgage market could be much worse than anticipated and that still worse could be to come.

Looking on the positive side, however, they said the figures made it virtually certain the US Federal Reserve will cut interest rates again next week. In late trade, the euro was at $1.4240, down from $1.4223 in early deals and after $1.4261 in New York late Tuesday.—AFP