Euro Slides as Trichet Damps Rate Speculation; U.S. Stocks Rise
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The euro retreated the most in two months against the dollar, while oil reversed earlier gains, as European Central Bank President Jean-Claude Trichet dimmed prospects for an interest-rate increase. U.S. stocks recovered from an early drop, while 10-year Treasuries fell a fourth day.
The euro slid 1.3 percent to $1.3633 at 4 p.m. in New York after tumbling as much as 1.5 percent. Two-year German bund yields sank 13 basis points to 1.36 percent. Brent crude, the benchmark grade for two-thirds of the world oil market, slipped 0.6 percent $101.70 after earlier reaching the highest price in 28 months. The Standard & Poor’s 500 Index rose 0.2 percent, while the 10-year Treasury yield increased seven basis points.