Reading tasks

A Understanding main points

Mark these statements T (true) or F (false) according to the information in the

texts on the
opposite page. Find the part of the text that gives the correct information.

1 The dollar rose against both the euro and the yen on January 8th. E
2 Figures that showed the strength of the US economy were published on January 8th.
3 During trading on January 8th, the dollar increased rapidly but then fell
slightly.
4 The yen has been at a high level because of Japanese monetary policy.
5 The US Ambassador to japan said it was true that he had pressed Japan to change
its policy.
6 The yen fell against the dollar on February 1oth, but it rose again later.
7 The dollar fell against the euro on March 8th.
8 Before March Bth, the euro had increased against the dollar.
9 Currency analysts gave the opinion that the euro would continue to get stronger.
10 Jane Foley thinks that the ECB will intervene to prevent the euro from falling
any further.

B Information search
Which of the following are given as causes of currency fluctuations in the three
texts?

1 unemployment figures 6 retail sales figures

2 stock market increases 7 forecasts of economic growth

3 trade deficit 8 changes in government policy

4 rumours of capital flows 9 intervention by the central bank

5 trade surplus
FINANCIAL TIMES

SATURDAY JANUARY 9 1999 &*

Currency markets

Dollar’s boost

MARKETS REPORT

By Alan Beattie
and Melanie Carroll ~~

The dollar shot up against the

euro on the back of employment
data showing the US economy con-
tinuing to surge ahead,

5 Traders struggled to recall the

last time that a piece of data

FINANCIAL TIMES

rather than rumours of capital

flows had moved the dollar, a ten-
tative sign some degree of normal-

18 ity was returning to the markets,

After rising nearly a cent in a

few minutes after the data were
released in the middle of the
European session, the dollar con-

15 solidated its new position. At the

end of London trading it closed at

$1.155 against the euro, up from
$1.167 the previous day.

THURSDAY FEBRUARY 11 1999

But against the yen, the dollar

20 remained unmoved by the data,

evidence that many traders expect

the dollar's next move to be fur-
ther down against the Japanese
currency.

25 In late afternoon in New York

the dollar was trading at 1.1606 to

the euro and 110.90 to the yen.

FINANCIAL TIMES
World business newspaper.
Yen drops on reports of US pressure

MARKETS REPORT

By Alan Beattie
BE

Rumours that the US administra-

tion was actively pushing Japan to
loosen monetary policy knocked
the yen sharply lower against the

FINANCIAL TIMES

5 dollar yesterday.

Reports in the US press claimed

that Washington was pressing the
Bank of Japan to ease monetary
policy, weakening the yen.

Despite a denial of this by

Thomas Foley. the US ambassador
to Japan, the yen dropped sharply
lower against the dollar during the
Asian trading session. It regained

TUESDAY MARCH 9 1999 x

15 some of those losses in London

trading hours, closing at ¥114.5,
slightly lower than its close of
¥114.4 on Tuesday.

The ven also fell against the

euro, closing down at ¥129.7.

FINANCIAL TIMES

World business newspaper.

Tietmeyer sparks euro profit taking

MARKETS REPORT.

By Alan Beattie
and Melanie Carroll ~~

long dollar positions,

10 The euro gained nearly a cent

rate to react to key German unem-

ployment data to be released

yesterday from its low point of 25today, and to the US retail sales

$1.08 on March 5th, closing in

London at $1.088.
But analysts said that the relief

The euro gained against the dollar 15 for the currency might be short-

vesterday after Hans Tietmeyer,

president of the Bundesbank, said

he did not want to see the euro

5 continue its present slide.

lived. Jane Foley, currency analyst

at Barclays Capital in London,
said the euro’s gains were a natur-
al response to recent lows, and in

Mr Tietmeyer's comments gave 20 her view it would remain weak in

the currency a rare boost, with

traders looking to take profits on

1 European Central Bank

the medium term.

She expected the euro-dollar

figures due on Thursday.

‘T don’t think the pace of decline
at the moment is significant. And 1
don’t think the ECB! is worried
30 about the euro's downside yet,
although if it moves sharply lower
the ECB will probably move in to
calm things down,” she said.

FINANCIAL TIMES
World business newspaper.
Vocabulary tasks

A Word search
Find a word or phrase in the texts that has a similar meaning.

: &

unofficial talk or opinion not always based on fact (Text A, para 2)

rHmaUCs.........

movement of large amounts of money (Text A, para 2)

Ei scuinerinnnsins Fs ipsam

dollar rate agreed in advance for deals in six months’ or one year’s time (Text C,
para 2)

statistics showing consumer spending in the country as a whole (Text C, para 5)

Thm sna re Spe A. vie
Currency markets |

B Word search
Replace the underlined items with words and phrases from the texts that have a
similar meaning.
1 The dollar increased rapidly against the euro. (Text A, para1) shot up
2 Employment figures showed that the US economy was getting stronger. (Text A, para
1)
3 The figures were made public in the middle of the European session, (Text A, para
3)
4 Reports in the US newspapers said that the yen should weaken. (Text B, para 2)
5 Jane Foley doesn’t think the speed of decline in the euro is big enough to worry
about. (Text C, para 6)

C Understanding expressions
Choose the best explanation for each of these words or phrases from the texts.

1 on the back of employment data (Text A, line 2)

a) as a result of employment data being published +
b) because employment data was unavailable

2 surge ahead (Text A, line 4)

a) grow more rapidly than other economies
b) decline more rapidly than other economies

3 tentative sign (Text A, line 8)

a) strong sign
hb) gentle sign

4 consolidated its new position (Text A, line 14)

a) became steady after some fluctuations
b) continued to grow

5 loosen monetary policy (Text B, line 3)

a) slightly reduce control of the ecanomy
b) greatly reduce control of the economy

6 knocked the yen lower (Text B, line 3)

a) had a slight impact an the yen, making it fall
b) had a strong impact on the yen, making it fall

7 looking to take profits (Text C, line 8)

a) hoping to take profits
b) seeing other people take profits