Alexa
  • Directory of Taiwan

Euro loses steam against dollar, but remains high

Euro loses steam against dollar, but remains high

The euro lost some steam against the U.S. dollar on Monday after coming within a whisker of its all-time high, but remained strong amid concern over the health of the U.S. economy.
The 13-nation euro rose to US$1.3839 in trading in European trading _ just short of its all-time high of US$1.3852 _ but later dipped below the US$1.38 mark. By late afternoon, it stood at US$1.3809, just above the US$1.3801 it bought in New York late Friday.
The British pound dropped to US$2.0306 from US$2.0447. However, the dollar headed lower against the Japanese currency, sliding to 117.81 yen from 118.41 yen.
With no major economic data released Monday, markets were looking forward to a U.S. Federal Reserve meeting this week for hints as to whether interest rates may be lowered amid fears of a slowdown.
On Friday, Labor Department data showed that the U.S. unemployment rate inched up to a six-month high of 4.6 percent in July as hiring slowed down.
The Fed has kept its benchmark interest rate steady at 5.25 percent, as it has done for the past year, even as the Bank of England and the European Central Bank have increased their rates.
Higher interest rates, a weapon against inflation, can support a currency by offering investors better returns on investments denominated in that currency.