Tumbling dollar keeps stocks down
NEW YORK, Nov. 19 (UPI) -- U.S. stocks opened lower Friday in the face of increasing investor concern over a weakening dollar's effect on the economy.
The Dow Jones industrials fell 94.51 or 0.89 percent to 10,478.04 by late-morning. The Nasdaq slipped 23.90 or 1.14 percent to 2,080.38 and Standard & Poor was down 10.75 or 0.91 percent to 1,172.80.
The dollar continued its slide. The euro was up 0.8 percent at $1.3056 after hitting a high of $1.3074 in trading Thursday. Against the yen, the dollar fell 1 percent to 102.965.
Gold futures, made more of an attractive investment by the tumbling dollar, climbed above $446 an ounce.
Oil prices were up 48 cents at $46.70.
Bonds traded lower with the benchmark 10-year note down 4/32 at 101 with its yield at 4.2 percent.
Dollar tumbles on Greenspan comments
NEW YORK, Nov. 19 (UPI) -- The U.S. dollar sank to new lows for the year against the Japanese yen in New York Friday, following remarks by Federal Reserve Chairman Alan Greenspan.
Analysts said the greenback sank to record lows as traders used the comments by Greenspan as an excuse to sell the dollar.
In trading, the dollar sank to 102.99 Japanese yen from 104.19 late Thursday in New York.
The euro was trading at $1.3047, up from $1.2959 late Thursday.
The dollar was also fetching about 1.1598 Swiss francs, down from 1.1626, while the pound rose to $1.8570 from $1.8506.
The dollar's fall also left the euro near a fresh all-time high amid broad losses for the U.S. currency. The euro reached as high as $1.3067, just off the $1.3074 high it reached in Asian trading early Thursday.
After weakening overnight, the dollar dipped sharply once Greenspan's speech to a conference of European bankers in Frankfurt was released.
But traders said there was no obvious reason for a sell-off from Greenspan's speech, as he downplayed concerns about the U.S. current account deficit. Greenspan also said that reducing budget deficit will lower risk of currency crisis.
Greenspan urges more 'flexible' Eurozone
FRANKFURT, Germany, Nov. 19 (UPI) -- The head of the U.S. central bank urged his European counterparts Friday to make their economies more flexible and open as a way to lower the euro's value.
Alan Greenspan, speaking to finance officials worried about the rise in value of the euro against the U.S. dollar, appeared to suggest while cutting the U.S. budget and current account deficits would help, Europeans themselves could take significant steps to reduce the U.S. balance of payments and, subsequently, the euro's value.
The U.S. current account deficit is the amount by which the nation's exports exceed its imports. As that deficit has risen, the euro's value has soared, hurting European exports.
Greenspan said the U.S. economy's "flexibility" may enable market forces to restore, over time and without crises, a lower U.S. current account deficit.
But "if such flexibility can be achieved more fully on a global scale," it would help the process, he said.
"Many steps have been taken in the euro area to facilitate the free flow of labor and capital across national borders, and considerable progress is being made to enhance competition in product, labor and financial markets. But more will need to be done."
Auction for Yukos core set for Dec. 19
MOSCOW, Nov. 19 (UPI) -- A planned sale of Russian energy giant Yukos' main asset has become clouded by confusion over the price, the participants and the legality of the sale.
Yuganskneftegaz, which produces more than half of the beleaguered company's output, is set for auction Dec. 19, Novosti reported Friday.
Russia says Yukos owes $18.5 billion in back taxes dating from 2000 to 2002, but its bank accounts have been frozen, thus preventing it from paying those debts. Some legal experts say the auction breaks Russian laws against selling a company's core assets to pay taxes.
The starting price of December's auction is $8.65 billion, well short of the $20 billion Yukos says the Yuganskneftegaz division is worth. The Kremlin's own advisers set a minimum of $10.4 billion but added that is too conservative.
Also unclear was who could participate. An official in Rome said Moscow had approved Italy's Eni as a bidder and was discussing the sale with the Italians. Russian officials, however, denied there were negotiations.
Western oil companies are reportedly worried about continued tax liabilities attached to Yukos assets.
Yukos officials say President Vladimir Putin intends to renationalize Yukos or sell it on the cheap to a political ally.
