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FOREX-Dollar boosted by Citi results but sentiment shaky

Fri Jul 18, 2008 4:28pm EDT
 
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* Citi's smaller-than-expected loss eases credit fears

* Euro capped as Trichet notes risks to growth

* Broad dollar sentiment still clouded by financial woes (Updates prices, adds comments, changes byline)

By Wanfeng Zhou

NEW YORK, July 18 (Reuters) - The dollar rose on Friday, heading for its largest weekly gain versus the euro in a month, after a smaller-than-expected quarterly loss from Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) eased worries about the U.S. financial sector.

Citi's results added to positive earnings news this week from Wells Fargo & Co. (WFC.N: Quote, Profile, Research, Stock Buzz) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz). That allowed the dollar to regain some strength after slumping to a record low against the euro on Tuesday.

"Citi earnings have encouraged the market to take on more risk and given (the dollar) a lift," said Stephen Malyon, senior currency strategist at Scotia Capital in Toronto.

They were "consistent with other bank earnings seen earlier this week, which has turned sentiment around on the dollar a little bit."

In late afternoon trading in New York, the dollar index, which tracks the greenback's performance against a basket of six major currencies, was up 0.2 percent at 72.191 .DXY.  Continued...

 

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