Traders blame euro difficulties on computer problems

US currency dealers left with unwanted euros

Computer glitches were yesterday blamed for teething troubles in the value of the euro. Europe’s new currency dipped two cents against the dollar in New York trading on Wednesday night, hitting a low of $1.155. It bounced back to $1.165 yesterday, but still standing three-quarters of a cent below the previous day’s London close. American dealers scrambled to get rid of their unwanted euros, but were thwarted due to poor liquidity. There were disagreements about the cause of the slump – some blamed problems with the Target cross-border payment system run by European central banks. Others feared investors were giving the currency a wide berth while it was in its infancy. The European Central Bank and the Bank of England both denied any major problems with Target. ®

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