Currencies
The euro had its biggest weekly gain against the dollar after U.S. economic reports indicated the world's largest economy is slowing more than that of the EMU. Europe's common currency rose to 87.90 U.S. cents. The euro has risen 4.7 percent against the dollar and 5 percent against the yen, its biggest weekly gain since its January 1999 debut.

Slowing U.S. growth and growing evidence that the economic recovery in Japan is faltering have boosted the euro as demand for U.S. and Japanese assets has fallen. The Organization for Economic Cooperation and Development's economic outlook report this month said U.S. growth will slow to 3.5 percent next year, from 5.2 percent in 2000. The EMU is expected to expand 3.1 percent in the same period, from 3.5 percent this year.

The yen fell to near an 18 month low against the dollar and the lowest against the euro since August 22, after a Japanese unemployment report fuelled concern the country's economic recovery is stalling. Japan said its jobless rate held steady at 4.7 percent in October, matching a six month high (see indicator scoreboard below). Japan will probably report Monday that the economic growth slowed to 0.1 percent, down from 1 percent in the second quarter and 2.5 percent in the first. Investors also expect business executives to show pessimism over Japan's economy in the Bank of Japan's quarterly Tankan survey of business confidence, scheduled for Dec. 13.

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