19 August 2005, 12:37  Euro extends slide against dollar

The euro was down against the dollar Friday, extending into its sixth day a slide that has been fueled by expectations of higher interest rates in the United States and strong U.S. economic data. The 12-nation euro bought $1.2157 in early European trading, down from $1.2180 late Thursday in New York. The British pound also fell, slipping to $1.7905 from $1.7935. The U.S. currency was barely changed against the Japanese yen, edging up to 110.52 from 110.51 yen. The dollar has advanced against the euro all week as economic reports showed both consumer and wholesale price inflation accelerating in the United States in July, bolstering expectations that the Federal Reserve will continue to lift interest rates. Higher U.S. rates would boost returns on many dollar-denominated securities, increasing demand for the currency. On Thursday, a survey from the Federal Reserve Bank of Philadelphia boosted optimism about the U.S. economy. It showed manufacturing activity in August was stronger than July and stronger than analysts expected in eastern Pennsylvania, southern New Jersey and Delaware

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