8 January 2003, 13:45  Euro eases but dollar gains seen limited

The euro eased a touch against the dollar in early deals today, as the greenback benefited slightly from President Bush's USD670bn economic stimulus package, announced yesterday At 0945, the euro stood at USD1.0406, while against sterling, it was up slightly at STG0.6497, as the Bank of England monetary policy committee (MPC) begins its two-day meeting on interest rates Analysts have noted that the dollar has not received the kind of boost expected when Bush first mooted his radical plan for kick-starting the economy "You'lll note that the USD hasn't rallied strongly on this radical plan. The FX market is suspicious, with good cause," said Niall Dunne of Ulster Bank Financial Markets He said that Bush's plan ignored the real problem for the US economy - the federal deficit. Dunne warned that the plan would make it more expensive for the US government to borrow as the emphasis on equities would make bonds less attractive Looking to the UK, Dunne said he did not expect any change in interest rates from the MPC //www.fxcentre.com

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