U.S. Market March 14, 2001

The Dollar traded at fresh 20-month peaks against the yen at 121.10 yen . The Yen battered by deepening pessimism about Japanese economy while the Dollar firms on safe-haven flows from eroding U.S. equities into short-dated instruments. Euro/yen also firmer, but stays off session peaks, hovers around 110 yen.

The Euro opened firmer at the start of the NY trading day at .9170 as the DOW futures were down 300+ points on concerns of the US economic status.

Several euro zone countries reported worse-than-expected inflation figures for February on Wednesday, reducing the European Central Bank's scope to cut interest rates to spur the faltering economy.

The Bank of England noted it would be ready to cut interest rates if the U.S. economy deteriorates further, one of the bank's policymakers said. The British Pound was weaker following this statement at it tested 1.4450 level.

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