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Dollar falls against euro but rises elsewhere

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(Globalpost/GlobalPost)

The euro Thursday strengthened against the dollar on solid economic indicators even as the recovering US economy helped propel the greenback higher against other major currencies.

The euro traded at $1.3035 at 2200 GMT, up from $1.3012 Wednesday night.

The euro also rose against the Japanese yen, trading at 128.40 from 127.19.

The dollar bought 98.43 yen, up from 97.72.

The dollar also rose against the British pound and the Swiss franc.

The euro's gains came after a European Commission monthly index of eurozone business and consumer confidence rose 1.8 points to 91.3 in June, the highest level since May 2012.

Sentiment about Europe was also boosted by a German labor report that showed the unemployment rate at 6.8 percent, below the 6.9 percent expected by analysts, according to a Dow Jones Newswires survey.

The strong European numbers came despite recent statements from European central bankers pledging to keep monetary policy accommodative.

"The euro steadied above three-week lows against the greenback as recovery-positive data from the region helped lessen the sting of the blitz of dovish remarks this week from a bevy of area central bankers," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Meanwhile, the dollar posted gains against other currencies after several economic indicators showed a strengthening US economy.

US jobless claims fell, while US pending home sales surged in May to their highest level since late 2006.

Consumer spending rose 0.3 percent in May, reversing a decline in April.

Federal Reserve officials Thursday continued to emphasize that they would not hastily end the US central bank's aggressive bond-buying program and would only do so if the economy improves. The assurances helped propel equity markets higher.

But David Song, currency analyst at DailyFX, said a growing number of Fed officials are becoming "increasingly upbeat" about the US economy.

"The bullish sentiment surrounding the reserve currency should gather pace in the second half of the year amid the growing discussion at the Federal Reserve to taper the asset-purchase program," Song said.

Among other currencies, the pound fell to $1.5259 Thursday compared with $1.5313 Wednesday.

The dollar rose to 0.9450 Swiss franc from 0.9428.

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http://www.globalpost.com/dispatch/news/afp/130627/dollar-falls-against-euro-rises-elsewhere