The cost of borrowing longer-term U.S. dollars in the London interbank market fell Friday as term funding pressures eased marginally.
Data from the British Bankers’ Association showed three-month dollar Libor,
seen as a key gauge of the effectiveness of the Federal Reserve’s monetary
policy, moved down to 0.50188% from Thursday’s 0.50375%, matching Wednesday’s record low.
The euro zone’s economic contraction slowed more than expected in July, but an acceleration in the decline of French output suggested the currency area’s recovery from the deepest recession since World War II is likely to be gradual.
The flash reading of the euro zone’s composite output index, a closely watched gauge of private-sector activity, rose to a 10-month high of 46.8 in
July from 44.6 in June, Markit Economics said Friday.
USD/THB ends steady at 33.97-33.99 vs 33.98 last close. Foreign players buy but overall trade fairly thin amid absence of fresh catalysts, plus players want to avoid holding positions over weekend. “There’s nothing new to drive the market. The dollar/baht should hover around this level for quite a while,” says local dealer. Central bank’s downward revision to 2009 GDP but bullish stance on 2010 economy was widely expected, thus had little impact on market. Resistance tipped at 34.10, support at 33.80.