Dollar jumps to six-month high against euro
The European single currency slumped under 1.46 dollars on Tuesday after the release of downbeat consumer confidence and business sentiment surveys in Germany.
By Agencies |
LONDON: The European single currency slumped under 1.46 dollars on Tuesday after the release of downbeat consumer confidence and business sentiment surveys in Germany.
In late morning trade, the euro sank as low as 1.4589 dollars, which was last seen in February. It later pulled back to stand at 1.4602, which compared with 1.4751 in New York late on Monday.
German economic prospects took two big hits on Tuesday, raising fears of recession as both business sentiment and consumer confidence were reported to be falling further.
The monthly business climate index calculated by the Munich-based economic research institute Ifo fell to 94.8 points from 97.5 points in July, its lowest level since August 2005.
Economists polled by Dow Jones Newswires had forecast a much more modest drop to 97.1 points.
"August's fall in the German Ifo business confidence index clearly adds to the recent run of bad news on the eurozone's largest economy," said Jennifer McKeown, analyst at London-based consultancy Capital Economics.
"The fall, from 97.5 to a three-year low of 94.8, was sharper than the consensus forecast but broadly in line with our own expectations. "The decline was due to falls in both business expectations and perceptions of current conditions."
In late morning trade, the euro sank as low as 1.4589 dollars, which was last seen in February. It later pulled back to stand at 1.4602, which compared with 1.4751 in New York late on Monday.
German economic prospects took two big hits on Tuesday, raising fears of recession as both business sentiment and consumer confidence were reported to be falling further.
The monthly business climate index calculated by the Munich-based economic research institute Ifo fell to 94.8 points from 97.5 points in July, its lowest level since August 2005.
Economists polled by Dow Jones Newswires had forecast a much more modest drop to 97.1 points.
"August's fall in the German Ifo business confidence index clearly adds to the recent run of bad news on the eurozone's largest economy," said Jennifer McKeown, analyst at London-based consultancy Capital Economics.
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"The fall, from 97.5 to a three-year low of 94.8, was sharper than the consensus forecast but broadly in line with our own expectations. "The decline was due to falls in both business expectations and perceptions of current conditions."
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