| Euro Sharp Rise Against Dollar Since Confidence Grows |
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| Tuesday, 03 August 2010 08:27 | |||||||
Page 1 of 2 London - The euro rose sharply against U.S. dollar on Monday local time, because the data and soaring stock markets pushing players to take more risks in the single currency which gives results higher, dealers said.They said the weak U.S. data, including second-quarter growth figures on Friday, all showed a slower recovery of the U.S. that, at the expense of the dollar, while European figures recently have been relatively strong, especially in major European power, Germany. In late trading Monday, the euro was at 1.3175 dollars, up sharply from 1.3047 dollars in New York Friday night. Against the Japanese currency, the dollar was slightly lower at 86.43 yen after 86.48 yen on Friday. Dealers said that after initial gains, the euro got more support when the U.S. Institute of Supply Management said its manufacturing index fell to 55.5 points in July from 56.2 percent in June, compared with 54.2 percent forecast. Readings above 50 percent indicates the manufacturing sector to grow. "July marked the 12th consecutive month of growth in manufacturing and an indication that demand is still strong enough in 10 of 18 industries," Norbert Ore of ISM said in a statement. Paul Dales from Capital Economics said the ISM data add to evidence that U.S. growth slows but does not indicate back into recession. CMC Markets analyst Michael Hewson said the reports added information from the U.S. Federal Reserve Chairman Ben Bernanke about berkutatnya problems in the economy, reducing the sentiment on the dollar. "Worse sustainable U.S. economic data and Bernanke's dovish rhetoric ... has helped to further weaken the U.S. dollar, sending the single currency past the 1.3125 dollar," said Hewson. "A sustained closing above this level could also pave the way for further increase of the euro against 1.3500 dollars," he added. Dealers also noted China's declining manufacturing data, supporting the view that global growth will moderate during the second half of this year. In late trading in London, the euro changed hands at 1.3175 dollars against 1.3047 dollars on Friday, at 113.88 yen (112.84), 0.8285 pounds (0.8311) and 1.3675 Swiss francs (1 , 3585). Dollar stood at 86.43 yen (86.48) and 1.0379 Swiss francs (1.0408). The pound was at 1.5900 dollars (1.5698). On the London Bullion Market, gold prices rose to 1188.50 dollars per ounce from 1169 dollars per ounce on Friday. (ANTARANews / AFP) www.tenderoffer.biz
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