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. Last Updated: 07/27/2016

Dollar Rally Fizzles, German Rate-Cut Speculation Cools




LONDON -- A dollar rally in Europe fizzled out Monday as speculation cooled on a German rate cut, and Daimler pulled the plug on ailing Dutch planemaker Fokker NV, blunting a record-breaking run by the German bourse.


The dollar ended lower as a wave of profit-taking prompted a sharp retreat from four-month highs set after Saturday's meeting of finance ministers and central bankers from the Group of Seven.


Although G-7 officials supported a stronger dollar against the Deutsche mark and yen, a cooling of speculation over further German interest rate cuts and a slide in Scandinavian currencies blunted the U.S. currency's progress.


The Fokker saga bogged down a record-breaking run by German blue chips this year which has seen the DAX index gain almost 5 percent.


The other European equity cliffhanger revolved around British hotel and restaurant company Forte, whose struggle to fight off a ?3.9 billion ($5.9 billion) bid from media group Granada reached a climax.