Euro Strengthens as Eurozone Growth Picks up
The euro ticked up Thursday on the back of an improving eurozone economy, while a disappointing U.S. retail sales report put pressure on the dollar.
Despite upbeat European growth, however, debt-saddled Greece confirmed that its economy had slipped back into recession, with no end in sight to tense bailout reform talks with its international creditors.
In Tokyo, the euro bought $1.1367 and 135.41 yen against $1.1354 and 135.29 yen in New York, and well up from $1.1246 and 134.80 yen earlier Wednesday in Asia.
The single currency climbed on news that growth in the eurozone strengthened to 0.4 percent in the first quarter, from 0.3 percent in the last three months of 2014. Some of that momentum came after the European Central Bank launched a massive bond-buying programme in March to fight tepid growth and deflationary risks in the currency bloc.
The dollar eased to 119.10 yen from 119.16 yen in New York and 119.83 yen in Tokyo earlier Wednesday.
A closely watched U.S. retail sales, a key part of consumer spending that drives most of the U.S. economy, stagnated in April after rising 1.1 percent in March. The average consensus estimate was for a 0.2 percent increase. Year-on-year, retail sales rose 0.9 percent, the weakest growth since 2009.
The data will muddy the waters for the Federal Reserve as it considers when to raise interest rates from record lows.
"There’s no way to put lipstick on a pig really, it was disappointing," Richard Franulovich, a currency strategist at Westpac Banking Corp., told Bloomberg News.
"Whatever bounceback we see I think is going to underwhelm, ergo I think more dollar weakness is the order of the day."
The dollar was weaker against other Asia-Pacific currencies.
It fell to Sg$1.3216 from Sg$1.3349 on Wednesday, to 33.37 Thai baht from 33.69 baht, and to 44.54 Philippine pesos from 44.73 pesos.
It also eased to 13,070.00 Indonesian rupiah from 13,164.00 rupiah, to Tw$30.54 from Tw$30.69, to 1,091.95 South Korean won from 1,099.71 won, and to 63.85 Indian rupees from 64.15 rupees.
The Australian dollar climbed to 81.35 U.S. cents from 79.82 cents while the Chinese yuan fell to 19.20 yen from 19.32 yen.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://www.naharnet.com/stories/en/178857 |