Euro Reverses Nosedive as U.S. Election Result Back in the Balance
November 9, 2000 - 0:0
LONDON The euro tumbled below 86 U.S. cents but then bounced back Wednesday as the U.S. presidential race went into overtime amid confusion over the result in the key state of Florida.
The single European currency had fallen sharply on initial reports that Republican candidate George W. Bush had achieved a narrow victory in the race for the White House, according to AFP dispatches.
But having fallen as low as 0.8545 dollars, the currency climbed back toward 0.8580 dollars as the crucial Florida result was thrown back into the balance.
Analysts had predicted that a Bush victory would help the dollar and hurt the euro. The Texan governor's tax cuts are expected to produce a surge of economic activity, implying higher interest rates which will naturally push the dollar higher.
His administration meanwhile is expected to be less favorably disposed to helping the European Central Bank conduct market intervention to help the euro rise.
The single European currency had fallen sharply on initial reports that Republican candidate George W. Bush had achieved a narrow victory in the race for the White House, according to AFP dispatches.
But having fallen as low as 0.8545 dollars, the currency climbed back toward 0.8580 dollars as the crucial Florida result was thrown back into the balance.
Analysts had predicted that a Bush victory would help the dollar and hurt the euro. The Texan governor's tax cuts are expected to produce a surge of economic activity, implying higher interest rates which will naturally push the dollar higher.
His administration meanwhile is expected to be less favorably disposed to helping the European Central Bank conduct market intervention to help the euro rise.