Euro

NEW YORK - Ending a four-day rally, the euro fell against the dollar yesterday on concern that the European Central Bank's decision to raise interest rates more than expected could hurt economic growth Europe's 11-nation currency had rallied as much as one U.S. cent after the central bank lifted rates by half a percentage point - double what economists forecast. "After the initial euphoria, the market started to worry this might stifle some of the economic upswing in some of the countries in Europe," said Per Norr, a trader at Den norske Bank.

FRANKFURT, Germany - Two days after U.S. Treasury Secretary John W. Snow rewrote the script for currency traders around the world with a few well-chosen words about the dollar, the euro showed yesterday how thoroughly it has taken on its latest role: shock absorber for the world's leading currency. On its first day of trading since Snow's remarks, the euro traded as high as $1.1737, before settling back to $1.1664 in New York. It was a remarkable rebound for the euro, which began life in 1999 at a rate of $1.168, before slipping into a long, politically embarrassing decline.

FRANKFURT, Germany - The European Central Bank took a baby step yesterday toward intervening in world markets on behalf of the downtrodden euro, using its foreign reserves to buy up $2.5 billion worth of the currency and briefly halting its tailspin against the dollar. Wim Duisenberg, president of the central bank, insisted that the move was little more than a routine portfolio adjustment and that "intervening in the market was not part of the motive." But currency analysts said the bank was hoping to prop up the currency, or at least protect it from tumbling even further.

ROME -- Everyone, it seems, is preparing for the arrival of the new European single currency -- bankers, businesses, consumers and, yes, also international criminals.Mafia men and white-collar crooks are among European big spenders anxious to exchange their outgoing currencies before they lose their value with the debut of euro cash and coins in 2002.Authorities say the coming of European single-currency bank notes will create an unprecedented make-or-break phase in the billion-dollar battle to curb money laundering -- with both criminals and police looking to capitalize on the rush to turn in the outgoing 11 euro-zone currencies.

W. R. Grace & Co. issued its second earnings warning in as many months yesterday, saying a weak euro and rising prices for natural gas and raw materials will hurt profits more than was previously thought. The Columbia chemical maker also said that asbestos-related litigation could prompt it to take a charge in the fourth quarter. Last month, Grace officials warned that its target of 12 percent to 15 percent earnings growth last year wasn't likely to be reached. Instead, it said, it expected earnings growth of 10 percent to 12 percent.

BERLIN-- --Standing before the majestic Brandenburg Gate on cobblestoned Pariser Platz, where President Reagan gave his famous "Tear Down This Wall" speech at the former divide between East and West Berlin, the Reed family from Atlanta had lunch on their minds. Only they weren't thinking about what they would eat; they were searching for a restaurant that would sustain the family of five for more sightseeing without breaking the bank. With the value of the dollar at historical lows against the euro -- the euro is worth about $1.37 as of Friday -- the Reeds are some of the many American tourists feeling the price pinch while traveling across Europe this summer.

NEW YORK - The Dow Jones industrial average fell for the fifth time in six days yesterday as consumer stocks including McDonald's Corp., Coca-Cola Co. and Minnesota Mining & Manufacturing Co. declined on concern that the falling euro will cut into profits. The Dow dropped 94.71, or 0.9 percent, to 11,087.47 as J. P. Morgan & Co. fell. Investors bet that Chase Manhattan Corp.'s purchase of the bank won't generate enough profits to justify the $35.2 billion price tag. Technology shares benefited from reports showing that wholesale prices unexpectedly fell and retail sales gained less than forecast in August, which buoyed optimism that the Federal Reserve is finished raising interest rates.

Beating the euro is a hot topic among travelers these days. Here are 10 suggestions, gleaned from New York Times readers, for saving money on a European vacation. 1. Take the least expensive route to Europe you can find, even if the destination wasn't in your plans. Then use a low-cost carrier like Ryanair to fly on to a city on your list. AFGHANISTAN Lonely Planet / $18.19 Lonely Planet has issued its first guide to Afghanistan. This is not the typical guidebook for the typical tourist; it is meant for those visiting the country on business, as well as for the few independent ones who are up for the challenge.

Winter isn't the ideal time to go to Europe, but it's the ideal period in which to find deals -- meaning lower than usual prices, though European countries are not about to give away the store. Finding deals also involves contending with the strength of the euro, the common currency for most of Europe. At this writing, it takes about $1.20 to buy one euro. It wasn't so long ago that the two currencies were on par. Now it takes more dollars to buy a meal or purchase a gift than it used to, with a dollar actually worth about 82 cents.

Nearly three years ago, Baltimore architect Roy H. Higgs worried that a project to design a large office and shopping development in Portugal might barely break even because the U.S. dollar was so strong. But since then, the dollar has plunged and Higgs' return on the $400,000 project has been more than 30 percent. He has even made money on plane flights and other expenses reimbursed by the client in pricey euros. "It is phenomenal. It has made us much more affordable, particularly in Europe," said Higgs, who is chief executive and a managing partner of Development Design Group Inc. in Baltimore.