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Dollar, yen rise on global growth worries

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(Globalpost/GlobalPost)

The dollar and the yen climbed Tuesday after weak data in the eurozone and China's slowdown stoked concerns about the health of the global economy.

The euro was under pressure after the Markit survey showed private-sector activity in the bloc remained in contraction in April. The reading for Germany, Europe's biggest economy, fell for the first time since November.

The euro bought $1.2997 at 2100 GMT, down from $1.3059 at the same time Monday.

It also fell against the Japanese currency, to 129.30 yen from 129.56 yen late Monday.

The dollar rose to 99.48 yen from 99.18.

The eurozone's "deepening recession may persistently drag on the exchange rate as it fuels speculation for additional monetary support," said David Song, currency analyst at DailyFX.

"The bearish sentiment surrounding the single currency may gather pace over the near- to medium-term as we anticipate the European Central Bank to push the benchmark interest rate to a fresh record-low in the coming months."

Kathy Lien at BK Asset Management said the latest European numbers added to recent signs of slackening growth.

"Investors certainly have reasons to be worried about global growth as weaker Chinese GDP numbers and now a contraction in German service and manufacturing activity followed the slowdown in US non-farm payrolls at the beginning of the month," Lien said.

The dollar, typically seen as a safe haven in times of uncertainty, rose against the Swiss currency, fetching 0.9451 francs compared with 0.9342 francs late Monday.

The pound fell to $1.5238 from $1.5286.

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http://www.globalpost.com/dispatch/news/afp/130423/dollar-yen-rise-global-growth-worries