January 26, 2008	Saturday	Muharram 16, 1429

LONDON, Jan 25: The dollar was firmer in European trade on Friday, continuing to find support from the quick accord on an economic stimulus plan between the White House and Congress and a rebound in the equity markets.

Dealers said that after a dramatic week marked by the US Federal Reserve’s radical emergency rate cut of three quarters of a percentage point, sentiment was calmer Friday as all eyes turned to next week’s regular Fed meeting.

They said expectations are for the Fed to cut interest rates again, most likely by half a point, but as players are now counting on this sharp medicine to boost the United States economy, such a move could support the dollar.

Anticipation of lower interest rates have kept the dollar on the defensive for some time but now coupled with the stimulus package, many expect the US economy to do better this year.

In European trade, the euro fell to $1.4665 from $1.4725 in early deals and $1.4756 in New York late on Thursday.—AFP