Euro Rises After Region’s Manufacturing Expands; Aussie Declines The euro rose to a one-month high against the dollar after a report showed manufacturing in the 17-nation currency bloc expanded in July, bolstering demand for the region’s assets. Europe’s shared currency strengthened for a second day versus the yen as another purchasing managers’ index indicated French output contracted at a slower pace. Australia’s dollar dropped for the first time in four days versus its U.S. counterpart after data showing manufacturing in China shrank in July reduced demand for higher-yielding assets. A gauge of volatility among Group-of-Seven currencies slid for a 10th consecutive day. Indonesia’s rupiah slumped to a four-year low. “The PMIs were a little bit stronger than anticipated,” said Steve Barrow, the head of Group-of-10 research at Standard Bank Plc in London. “If you look at how euro-region data has progressed recently we’ve tended to see more upside surprises. There’s a relative improvement in the perception of euro-zone data, which is helping the euro.” The euro rose 0.1 percent to $1.3232 at 9:11 a.m. London time, after reaching $1.3255, the highest level since June 20. Europe’s shared currency climbed 0.7 percent to 132.33 yen. The dollar rose 0.6 percent to 100 yen. The euro may reach $1.34 by the end of next week, should positive developments continue, Barrow predicted. A manufacturing index based on a survey of purchasing managers in the euro area rose to 50.1 from 48.8 in June, London-based Markit Economics said today. Economists in a Bloomberg survey predicted a reading of 49.1. A level of 50 is the dividing line between expansion and contraction.
Posted on: Thu, 25 Jul 2013 10:43:44 +0000
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