04.11.2008 20:21

American focus: [M]

The dollar fell the most against the euro since the 15-nation currency's 1999 debut and the yen weakened as a rally in global stocks and declines in money- market interest rates reduced the currencies' haven appeal.
The greenback also dropped against the New Zealand and Australian dollars as the cost of borrowing dollars for one month in London slid to the lowest level in almost four years.
The dollar fell 2.7% to $1.3000 per euro, from $1.2643 yesterday.

The London interbank offered rate, or Libor, that banks charge each other for one-month loans in dollars slid for a 17th day as central-bank cash injections and interest-rate cuts worldwide showed signs of reviving lending. The rate dropped 0.18 percentage point to 2.18 percent, the lowest level since November 2004, according to the British Bankers' Association.
U.S. stocks gained in an Election Day rally. The Standard & Poor's 500 Index rose above 1,000 for the first time since Oct. 14, increasing 3.5 percent. The MSCI World Index of stocks for 23 developed countries added 1.2 percent, its sixth consecutive gain, the biggest run of advances since July.
``It's a broad setback for the dollar,'' said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co. in New York. ``We do see some signs of tension subsiding a bit. This correction phase could last weeks.''