FOREX-Dollar stalls as oil rebounds on missile test news

Wed Jul 9, 2008 8:50am BST
 
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* Dollar broadly lower after Iran missile tests

* Oil resumes climb as geopolitical worries grow

* Dollar index down 0.1 pct at 72.906

(Updates prices, adds comments, previous TOKYO)

By Ian Chua

LONDON, July 9 (Reuters) - The dollar stalled on Wednesday as oil prices rebounded after Iran test-fired some missiles, raising the heat in a region already suffering from increased tension over Tehran's nuclear programme.

A pick-up in geopolitical concerns also gave safe-haven currencies like the Swiss franc <CHF=> a bid tone, while the high-yielding Australian dollar <AUD=> sagged, further pressured by a report showing consumer confidence at 16-year lows.

Iran's state media reported Iran had test fired nine long- and medium-range missiles, including one which it has previously said could reach Israel and U.S. bases in the region. [ID:nL09130312]

But analysts said the Iran news was unlikely to have a long-lasting impact on a currency market worried about the global economic slowdown and surging inflation.  Continued...

 
Currency
US $ inGBP =0.5727
Euro inGBP =0.7771
¥en inGBP =0.0057

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