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LONDON, Aug 7: Trading in the euro against the dollar turned highly volatile on Thursday, with the single currency plunging, rallying and then falling again on comments from ECB head Jean-Claude Trichet.
The euro initially fell as low $1.5396 in mid-afternoon trading from $1.5502 shortly before the Trichet comments.
But it then rallied to $1.5413 as traders balanced the weight of his analysis before falling back to $1.5339, compared with $1.5408 late in New York on Wednesday.
The euro wobbled on Trichet’s comments on weakening growth, suggesting that rates might be lowered, thereby making the euro less attractive to investors.
—AFP
