U.S. Market February 12, 2001

The Euro is broadly higher during the Friday NY session against dollar, yen. Yen

pressured after BOJ cuts the symbolic discount rates overnight and left the call rate unchaged at 0.25 percent. This was the first cut in the Discount rate in 6 sixs. Euro/yen climbs above 108.90 yen. The euro benefited across the board from policy moves by the Bank of Japan and a denial of rumoured euro sales by the Bank of Greece. In the absence of US domestic data, the pound followed the euro's swings. Sterling fell to one-week lows against the euro but recovered from earlier two-month lows against the dollar by late European trade on Friday, tracking gains in the euro/dollar exchange rate.

The dollar got as high as 1.6775 francs intraday, last trading so high on

December 21. It had strengthened early on Friday as the yen weakened ahead of

the Bank of Japan's announcement that it will cut its discount rate to 0.35

percent from 0.50 percent.

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