Dollar lifted by Bush, Paulson comments

0 Comments | AFP, May, 2007

NEW YORK (AFP) — The dollar extended its rally on the euro Thursday as favorable comments in Washington on the greenback and openness to foreign investment overshadowed news from major central banks, traders said.

The market also shrugged off a weak report on the US trade deficit and announcements from three major central banks in 24 hours, focusing instead on comments by US President George W. Bush and US Treasury Secretary Henry Paulson.

The euro slumped to 1.3483 dollars at 2100 GMT from 1.3527 dollars in New York late on Wednesday.

The edged down slightly to 119.90 yen, compared with 120.01 yen on Wednesday.

The market action came amid meetings of the Bank of England and European Central Bank and a day after the US Federal Reserve made no change...