Greenback gains on euro

The US dollar strengthened in relation to the euro after US Federal Reserve Chairman Ben Bernanke said in congressional testimony that there is reason to consider another fiscal stimulus package similar to the one passed earlier, but it was unlikely that any package would be considered before the Bush administration ends in January.

At just past noon in New York the US dollar traded at $1.3317 to the euro, while at the same time the yen was up versus the euro to ¥135.4887 while it took ¥101.745 to buy a dollar.

The Indian rupee was weaker in relation to the greenback after a one percentage-point interest rate cut to 8 percent there, trading at 49.055 rupees to the dollar, while the Korean won gained to 1,294.4 won to the dollar after a bank rescue plan was outlined in South Korea.

The Australia and New Zealand dollars were helped by the news from South Korea that it would provide $30 billion in US dollars to banks there and guarantee $100 billion in bank debts.

In addition, the New Zealand dollar was helped by a statement from the New Zealand government that it is considering a plan to guarantee wholesale bank deposits after it guaranteed retail deposits there last week.

In midday trade in New York the Australian dollar was worth 69.65 cents US while the New Zealand dollar was worth 61.89 cents US.

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