Dollar falls against euro amid rumors of Greek aid plan
Sunday, 14 March 2010
NEW YORK, March 13 (AFP): The dollar fell against the euro yesterday as investors shrugged off a stronger-than-expected US retail sales report and mulled rumors of a European plan to help debt-stricken Greece.
The euro was changing hands at 1.3761 dollars around 2200 GMT, up from 1.3678 dollars late in New York on Thursday.
The dollar held steady against the Japanese currency, trading at 90.52 yen from 90.48 yen Thursday.
"Based upon the price action in the financial markets on Friday, the US retail sales report failed to impress traders and investors," said Kathy Lien at Global Forex Trading.
Retail and food service sales increased 0.3 per cent in February despite severe winter storms, Commerce Department data showed, instead of falling 0.2 per cent as expected by most analysts.
"There was no ambiguity in the strength of the consumer spending report yet equities and bonds ended the day virtually unchanged," Lien said.
The dollar rose initially following the report but gave back its gains as equities failed to follow through, she added.
The euro, meanwhile, benefited from strong economic data and speculation that Europe is mustering support for ailing eurozone member Greece.
Factory output in the 16-nation eurozone rose 1.7 per cent in January from December and were up 1.4 per cent from a year ago, official data showed.
Detailed options for concrete European-level financial support to help Greece out of its debt crisis will be presented to eurozone finance ministers meeting next week, sources said.
The European source said that officials have in fact "left no stone unturned" in examining available options, essentially confirming a report in French daily Le Monde on Friday.
According to the newspaper, a deal could be agreed in principle on Monday, with two plans of action on the table.
One involves a series of loans by European Union countries, coordinated by the European Commission, the EU's executive arm.
The euro was changing hands at 1.3761 dollars around 2200 GMT, up from 1.3678 dollars late in New York on Thursday.
The dollar held steady against the Japanese currency, trading at 90.52 yen from 90.48 yen Thursday.
"Based upon the price action in the financial markets on Friday, the US retail sales report failed to impress traders and investors," said Kathy Lien at Global Forex Trading.
Retail and food service sales increased 0.3 per cent in February despite severe winter storms, Commerce Department data showed, instead of falling 0.2 per cent as expected by most analysts.
"There was no ambiguity in the strength of the consumer spending report yet equities and bonds ended the day virtually unchanged," Lien said.
The dollar rose initially following the report but gave back its gains as equities failed to follow through, she added.
The euro, meanwhile, benefited from strong economic data and speculation that Europe is mustering support for ailing eurozone member Greece.
Factory output in the 16-nation eurozone rose 1.7 per cent in January from December and were up 1.4 per cent from a year ago, official data showed.
Detailed options for concrete European-level financial support to help Greece out of its debt crisis will be presented to eurozone finance ministers meeting next week, sources said.
The European source said that officials have in fact "left no stone unturned" in examining available options, essentially confirming a report in French daily Le Monde on Friday.
According to the newspaper, a deal could be agreed in principle on Monday, with two plans of action on the table.
One involves a series of loans by European Union countries, coordinated by the European Commission, the EU's executive arm.