News Column

Dollar Holds Recent Gains Versus European Rivals

August 14, 2014

WASHINGTON (Alliance News) - The dollar was virtually unchanged Thursday, staying near its highest in months versus the euro and sterling amid disappointing economic data from across the Atlantic.

The economic recovery in the eurozone unexpectedly came to a halt in the second quarter, with Germany and Italy shrinking from the prior quarter.

GDP was flat in the June quarter, after seeing an increase of 0.2% in the preceding quarter.

The news may compel the European Central Bank to offer additional stimulus in the next few months weighing on the euro.

The dollar was stuck at a 9-month high near USD1.3360 against the euro, having seen little movement this week after strong gains early in August.

The buck held yesterday's gains against the sterling, staying at USD1.6680 as the Bank of England made it clear there was no chance of an early UK interest rate rise.

Quiet dealing left the dollar at Y102.50, near the upper end of a narrow long-term trading range.

In economic news from the US, initial jobless claims rose more than expected to 311,000, up 21,000 from the previous week's revised level of 290,000. Economists expected jobless claims to edge up to 295,000 from the 289,000 originally reported for the previous week.

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Source: Alliance News

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