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Euro slips against U.S. dollar

Euro slips against U.S. dollar

The 13-nation euro backed down Monday off its all-time high against the U.S. dollar, on mixed economic news from the U.S. and Europe.
In afternoon European trading the euro bought US$1.3628 _ still high but down from the all-time peak of euro1.3682 it hit Friday and less than the US$1.3649 it fetched later that day in New York.
The pound drifted farther from the US$2.00 mark, buying US$1.9964 compared with US$1.9980 late Friday. The dollar was up slightly against the Japanese currency, buying 119.53 yen compared to 119.50 on Friday.
Germany's Federal Statistics Office reported Monday that retail sales fell 0.7 percent for March on the month in Europe's largest economy, underperforming expectations of a 0.8 percent rise.
The preliminary figures were based on results from six of the largest states.
At the same time, EU statistics agency Eurostat reported in a first estimate that inflation eased slightly from 1.9 percent in March _ well under the European Central Bank's guideline of just under 2 percent and adding to expectations that it will be in no rush to raise interest rates from the current 3.75 percent when it meets next week.
Higher rates can bolster a currency by providing better returns on certain types of investments.
However, the European Commission's business climate indicator hit a high of 1.61 in April, up from 1.54 in March, with industry managers saying they were more optimistic about total orders, recent production trends and production expectations in the months ahead. Expectations on export orders stayed stable.
Meanwhile in the U.S., the Commerce Department reported that spending rose at the slowest rate in five months in March, even though personal incomes posted a solid gain.
Consumer spending on all items was up 0.3 percent last month, the slowest increase since a similar rise in October. Incomes rose by 0.7 percent, the fourth straight solid month of income growth.


Updated : 2021-03-02 01:19 GMT+08:00