Dollar nears 3-mth low, shares climb after Fed tests the brakes

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New York, Nov.24 (BNA): Shares hit a two-month high and the dollar swooped towards a three-month low on Thursday, after Federal Reserve signals of smaller interest rate rises from next month were followed by the message from Frankfurt that the ECB will plough on.


With Wall Street shut for Thanksgiving, it was up to Europe to continue the rebound in market confidence that has been building for more than a month, reports Reuters.


It seemed a bit of a struggle early on when London's FTSE refused to budge, but there were just enough gains in the rest of Europe and in Asia overnight to ensure things kept shuffling forward.


The euro rose as high as $1.0447, edging it closer to its recent four-month top of $1.0481, while the dollar weakened 0.6% against the Japanese yen to 138.70 yen and past $1.20 against sterling.


"The dollar could stay pressured for a bit longer, but it's probably embedding a good deal of Fed-related negatives now," analysts at ING wrote.


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