U.S. Market March 20, 2001

The U.S. Dollar gave up recent gains vs. euro in wake of 50 bp Fed rate cut, as U.S. stocks fell into negative territory. Euro/dollar rose above .9080 level as the US equity market closed on Tuesday. Dollar Yen fell to fresh session lows near 122.20 yen. U.S. stocks dropped after Fed's 50 basis rate cut disappointed investors hoping for an even deeper cut, with Nasdaq down near 5 percent, Dow Jones industrial average off 2.4 percent.

European Central Bank Vice President Christian Noyer reiterated on Tuesday that the euro zone's growth outlook remained positive and the single currency area had not, for now, been affected by the sharp U.S. slowdown.

The U.S. trade deficit showed little change in January and the levels of exports and imports suggest a cooling economy, government data showed today. Increased imports of consumer goods and a record volume of imports of petroleum products helped widen the trade gap to $33.3 billion in January from $33.2 billion a month earlier, the Commerce Department said.

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