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Dollar pushes euro further away from all-time high

Dollar pushes euro further away from all-time high

The dollar rose against the euro Wednesday after the U.S. government reported surging factory orders in March while unemployment in Germany narrowed at a slower pace in April.
In late New York trading, the dollar bought $1.3598 euro _ down from the all-time peak of $1.3682 it hit Friday, and slightly less than the $1.3620 it fetched in late trading Tuesday.
The British pound fell slightly to $1.9896 from $1.9996 in late trading Tuesday, staying clear of the $2 level it reached nearly two weeks ago.
The dollar was boosted by a U.S. Commerce Department showing orders to U.S. factories surged in March by the largest amount in a year, an encouraging sign that a recent slowdown in manufacturing could be nearing an end.
The agency reported that total factory orders rose by 3.1 percent in March, pushed higher by a jump in demand for commercial aircraft and the largest rise in the category, which tracks business investment in new equipment, in 2 1/2 years.
The increase far exceeded the 2 percent figure analysts expected and offered hope that manufacturers were beginning to see 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.
In Germany, unemployment slipped to 9.5 percent, its lowest level since October 2002, but declined at a slower pace than it has been.
The dollar rose slightly against the yen amid thin activity over Japan's Golden Week holidays. It bought 120.12, up from 119.72 yen late Wednesday.
In other New York trading, the dollar bought 1.2140 Swiss francs, up from 1.2134 late Tuesday, and 1.1084 Canadian dollars, down from 1.1105.


Updated : 2021-02-25 16:36 GMT+08:00