Euro rises after mixed data
October 5, 2009
The euro climbed against the dollar on Monday following mixed eurozone economic data and after leading finance ministers used a weekend meeting to stress the importance of a strong US currency.
The European single currency rose to $1.4615 from $1.4572 late in New York on Friday.
Against the Japanese currency, the dollar firmed to 89.88 yen from 89.80 yen on Friday.
Traders here digested official data showing sales dropped in August for retailers across the 16 nations using the European single currency.
Private sector business activity in the eurozone grew in September with manufacturing and services each gaining on initial estimates, according to a separate closely-watched survey published on Monday.
At the weekend meanwhile, finance ministers from the G7 economic powers warned against currency volatility, stressing the importance of a strong dollar and a flexible yuan exchange rate for future global economic stability.
"The lack of any comments in support of the dollar from the G7 initially drove the euro higher overnight. The euro, however, has failed to hold its best levels," said Jane Foley, analyst at Forex.com.
Looking ahead, the European Central Bank and the Bank of England each hold their latest monthly policy meetings on Thursday. Both central banks are expected to leave their key interest rates at record low levels.
Elsewhere on Monday, the yen dipped after Japan's finance minister warned of possible action to curb the currency's strength, which is hurting exporters, dealers said.
"We will take appropriate steps if one-sided movements become excessive," Hirohisa Fujii said Saturday at a press conference after meeting fellow Group of Seven finance ministers in Istanbul.
The Japanese currency hit an eight-month high early last week of 88.25 to the dollar after Fujii said he was against intervention in principle to weaken the currency and boost exports.
In London on Monday, the euro was changing hands at 1.4615 dollars against 1.4572 dollars late on Friday, at 131.36 yen (130.87), 0.9156 pounds (0.9148) and 1.5109 Swiss francs (1.5101).
The dollar stood at 89.88 yen (89.80) and 1.0338 Swiss francs (1.0408).
The pound was at 1.5961 dollars (1.5938).
On the London Bullion Market, the price of gold increased to $1 an ounce from $1 003.5 an ounce late on Friday. - Sapa-AFP
|
|
