Currencies
The euro appears to be stabilizing. It continues to improve because of the narrowing growth gap between United States and the European Monetary Union. The uncertainty of the presidential elections is taking its toll on the dollar.

The euro leveled off after its rise from under $0.84 to nearly $0.90 despite unfavorable news for the currency. EU leaders are still divided over a constitutional change to prepare for expansion, underscoring one of the euro's handicaps as a common currency. And German economic reports indicate that the nation's industrial sector has lost considerable momentum.

Evidence of slower growth in the United States and Japan has allowed the euro to rise against both the dollar and the yen. Analysts feel that the gains could be extended as the outlook for the European economy, though one of slowing, looks relatively more favorable.

The yen continues to erode on concern over the health of the Japanese economy. Over the last two quarters Japan has not been able to reach a one percent growth rate. Prime Minister Mori, after trying to solidify his political base with a new cabinet, is now caught in a new potential scandal concerning organized crime.

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