December 12, 2007	Wednesday	Zilhaj 1, 1428

LONDON, Dec 11: The euro was slightly lower against the dollar on Tuesday as traders awaited an expected quarter-point interest rate cut by the US Federal Reserve.

In late European trading, the euro fell to $1.4694 from $1.4712 in New York late on Monday.

The dollar gained to 111.79 yen from 111.70 late on Monday.

“While a 25-point (Fed funds) rate cut is expected to be generally positive for the dollar, the exception to this forecast may emerge in the event that the central bank issues a more dovish statement than in the October meeting as it shifts the balance of risks towards further slowing in the economy,” said Ashraf Laidi, an analyst at CMC Markets.

A 25-basis-point cut is seen as the most likely outcome of the Fed meeting after last week’s solid non-farm payrolls data and some stronger-than-expected housing data on Monday.

However a 50-basis-point cut remains possible as the Fed tries to fend off signs of a severe economic slowdown, dealers said.

In European trade Tuesday, the euro changed hands at $1.4694, against $1.4712 late on Monday, at 164.28 yen (164.33), 0.7210 pounds (0.7189) and 1.6669 Swiss francs (1.6596).

The dollar stood at 111.79 yen (111.70) and 1.1346 Swiss francs (1.1277).

The pound was at $2.0384 ($2.0463).

In London, the price of gold dropped to $806.75 per ounce from $809.50 late on Monday.

—AFP