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Weak euro gets little attention

The Associated Press

Europe's common currency neared parity with the dollar again last week, but its slide wasn't receiving much attention on Saturday's meeting of finance min­isters from the world's seven richest nations.

That's because a weak euro has become a fact of life in economic circles, and many analysts say that's not such a bad thing as long as the U.S. economy stays on the fast track and European growth continues slowly. "The euro is weakening because it needs to do that," said Gerard Gardner, a London-based foreign exchange strategist . "Europe is just finding the right price as to where things work for it."

A cheaper currency makes exports more com­petitive and contributes to trade growth that is also supported by a strong U.S. economy and recovering Asian markets. Likewise, a stronger currency can hurt exports.

Eleven of the 15 European Union countries launched the eure Jan. 4,1999, in hopes that the common currency would challenge the dollar for dominance in world financial markets through closer European integration, borderless travel and virtually free trade.

Euro helps sterling to rise to 14-year high

Financial Times

Sterling continued its breathless ascent yesterday, climbing to a 14-year high against the euro. Higher-than-expected pro­ducer prices added to ster­ling's recent momentum, sending the pound to a high of 61.12 pence against the euro, its fifth consecutive high in as many sessions.

The pound also reached 109.3 on the Bank of England's index, its highest level since January 1986. Sterling's rise was assisted by the continued weakness of the euro, which suffered in London trading from disappointment over the survey from Ger­many. While the confidence survey confirmed expecta­tions that growth in Europe's largest economy was gathering pace, it failed to live up to rumours in the run-up to its release.

Analysts said there was no end in sight to sterling strength. "With the prospect of an even weaker euro there is little reason not to see ster­ling going further," said Chris Furness, senior cur­rency analyst at the eco­nomic consultancy in London. Cameron Crise, currency strategist, said sterling was becoming the ideal safe haven currency. "High yields and high growth make sterling the best choice when the euro is weak or when US equities are sick," he said.

He added that the euro would continue to be depressed by the outflow of investment funds from Europe.

Exercise 4..Find English equivalents in the texts:

Общая европейская валюта; Вводить Евро; Господство на мировом ; финансовом рынке;Набирать темп; Поток инвестиций; Достигать равной отметки; конкурентноспособный; способствовать росту торговли; Европейская интеграция; Безвизовое пересечение границ.

Exercise 5.Explain these words or expressions in English

to near parity with

to stay on the fast track

borderless travel

ster­ling's recent momentum

to gather pace

the ideal safe haven currency

Exercise 6. Translate the text

Доллар взял 30-рублевый рубеж

ПРОИЗОШЛО это скучно, без повышения цен и краха на биржах. Курс доллара давно подбирался к этой заветной цифре. Но Центробанк всем авторитетом своих золотовалютных запасов, составляющих 32 миллиарда долларов, давал понять: еще рано.

Председателю ЦБ не позавидуешь. Отечествен­ный производитель умоляет «уро­нить» рубль как можно ниже. Наши товары тогда станут дешевле запад­ных. Но такой ход точно не одобрит народ. Цены в этом году значительно возросли, и инфляция в 9 процентов (за 6 месяцев этого года) уже не укладывается в планы правительства. Если вместе с мясом, ботинками и квартплатой страшно подорожает еще и доллар, то пусть власть то­гда не обижается на свой пошатнув­шийся рейтинг.

Вот Виктор Геращенко и баланси­рует, бо­ясь дать резкий крен в одну из сто­рон. Судя по его заявлениям, доллар в этом году не будет стоить дороже 31 рубля.

Тем временем россияне уже по­сматривают в сторону евро. Все специалисты сходятся, что единая валюта Европы будет по от­ношению к доллару крепчать. Но наши банки взимают за перевод долларов в евро такой процент, что проку от подобных вложений пока ноль.

Exercise 7.Use the following words in the extract

trade balance deficit

be exchanged

currencies

fall

trade

currency

rate of exchange

In order for International …. to take place, countries have to buy and sell foreign … . This is done on the foreign exchange market. The value of a .... on the foreign exchange market changes frequently and the price at which money can … … at the particular time is called the …. . The changes in the exchange rate are influenced by many political and economic factors. The value of the currency will probably …. , for example, if a country has a large …. .. …. .

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