U.S. Market February 28 , 2001

The dollar gained against the euro and yen on speculation the Federal Reserve will cut interest rates.The US equity markets rallied on speculation of an iminient rate cut – perhaps as early as this week. Dow Jones rose 200 points while the NASDAQ climbed 45 points.

Euro hovered above 91 cents consolidating in a 1/4 cent range. Dollar Swiss tested the 1.6880 level while Dollar yen probed above the 116.50 area.

On a separate note - the European single currency will be put to its first real test when crisis confronts the Euro zone, Horst Siebert, the president of the Kiel Institute for World Economics, told French daily Le Monde in an interview. Chancellor Gerhard Schroeder said on Monday he was confident German economic growth would remain strong this year. FX Market awaiting the US consumer confidence figures and Fed Chairman Greenspan testimony latter this week.

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