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Euro slips against U.S. dollar, backing further from all-time high

Euro slips against U.S. dollar, backing further from all-time high

The euro fell against the U.S. dollar on Wednesday as unemployment in Germany narrowed at a slower pace in April and U.S. factory orders surged ahead in March.
In late afternoon European trading, the euro bought US$1.3594 _ down from the all-time peak of US$1.3682 it hit Friday, and slightly less than the US$1.3600 it fetched in late trading Tuesday in New York.
The British pound fell slightly to US$1.9900 from US$1.9987 in late trading Tuesday, staying clear of the US$2 level it reached nearly two weeks.
In Germany, unemployment slipped to 9.5 percent, its lowest level since October 2002, but declined at a slower pace than it has been.
In Washington, the dollar was helped by a U.S. Commerce Department that showed orders to U.S. factories surged in March by the biggest amount in a year, an encouraging sign that a recent slowdown in manufacturing could be nearing an end.
The agency said that total factory orders rose by 3.1 percent in March, pushed higher by a big jump in demand for commercial aircraft and the biggest rise in the category that tracks business investment in new equipment in 2 1/2 years.
The increase was far better than the 2 percent figure that analysts had been expecting and offered hope that manufacturers were beginning to experience rising demand after a recent weak period brought on by troubles in housing and auto sales.
The news lessens the likelihood that the Federal Reserve will lower interest rates to encourage spending _ especially as costs rise.
Lower interest rates, which can jump-start an economy, can also weaken a currency by subtracting from the returns on some investments.
The dollar rose slightly against the yen amid thin activity over Japan's Golden Week holidays. It bought 120.10, up from 119.75 yen late Wednesday.


Updated : 2020-12-03 06:18 GMT+08:00