NEW YORK: The euro slid against the dollar on Monday and was on track for its worst month since December, pressured by nagging euro zone stresses as German retail sales were softer than expected and Spain slipped back into recession.
Investors were also wary of buying euros before weekend elections in France and Greece and a European Central Bank meeting this week that could further knock sentiment on the euro zone common currency.
The yen was one of the big gainers of the day, hitting a more than two-month high against the dollar and a two-week peak versus the euro, as investors sought the Japanese currency's safety on global economic worries.
"All the news out of Europe is getting worse, although we're still in a range," said Win Thin, senior currency strategist, at Brown Brothers Harriman in New York.
"I think the European news and the generally weak US data are sort of feeding into this risk-aversion mode." The euro failed to gain traction versus the dollar despite signs the US economic recovery was losing momentum and concerns about possible further US monetary easing.
Data on US spending for March and business activity for the US Midwest released on Monday reinforced that view. A report showed US household spending rose 0.3 percent, below the consensus forecast of a 0.4 percent increase.
Taking into account inflation, spending rose 0.1 percent. Adding to the weak US view was a drop in Midwest business activity.
The Institute for Supply Management-Chicago's business index fell to 56.2 in April, below market forecasts of 61.0. The reading was 62.2 in March..
In midday New York trading, the euro fell 0.2 percent to $1.3228 against the dollar as investors were wary of pushing it back toward a near 1-month high of $1.3270 on Friday.
However, it stayed just above support at its 55-day moving average at about $1.3205. On the month, the euro was down 0.9 percent, its worst performance since December last year.
Markets are on tenterhooks, awaiting the second round of the French presidential vote and elections for a new Greek parliament this weekend.
Data showing Spain slipping into recession also highlighted concerns that harsh austerity measures in deeply indebted smaller euro zone economies were hampering growth.
This left the euro struggling to benefit from weakness in the dollar, which earlier touched 78.638 against a basket of currencies. The dollar fell to its lowest since March 1 before recovering to trade at 78.835, up 0.2 percent on the day.
The euro also dropped to a two-week low against the yen at 105.45 yen and last traded at 105.56, down 0.8 percent. Investors expected the Japanese currency to benefit from safe-haven demand in view of Europe's debt problems.
Markets in most of Europe will be shut on Tuesday for May Day, while Japan celebrates Golden Week holidays for much of the week, keeping trading on foreign exchange markets subdued.
indiatimes.com
Investors were also wary of buying euros before weekend elections in France and Greece and a European Central Bank meeting this week that could further knock sentiment on the euro zone common currency.
The yen was one of the big gainers of the day, hitting a more than two-month high against the dollar and a two-week peak versus the euro, as investors sought the Japanese currency's safety on global economic worries.
"All the news out of Europe is getting worse, although we're still in a range," said Win Thin, senior currency strategist, at Brown Brothers Harriman in New York.
"I think the European news and the generally weak US data are sort of feeding into this risk-aversion mode." The euro failed to gain traction versus the dollar despite signs the US economic recovery was losing momentum and concerns about possible further US monetary easing.
Data on US spending for March and business activity for the US Midwest released on Monday reinforced that view. A report showed US household spending rose 0.3 percent, below the consensus forecast of a 0.4 percent increase.
Taking into account inflation, spending rose 0.1 percent. Adding to the weak US view was a drop in Midwest business activity.
The Institute for Supply Management-Chicago's business index fell to 56.2 in April, below market forecasts of 61.0. The reading was 62.2 in March..
In midday New York trading, the euro fell 0.2 percent to $1.3228 against the dollar as investors were wary of pushing it back toward a near 1-month high of $1.3270 on Friday.
However, it stayed just above support at its 55-day moving average at about $1.3205. On the month, the euro was down 0.9 percent, its worst performance since December last year.
Markets are on tenterhooks, awaiting the second round of the French presidential vote and elections for a new Greek parliament this weekend.
Data showing Spain slipping into recession also highlighted concerns that harsh austerity measures in deeply indebted smaller euro zone economies were hampering growth.
This left the euro struggling to benefit from weakness in the dollar, which earlier touched 78.638 against a basket of currencies. The dollar fell to its lowest since March 1 before recovering to trade at 78.835, up 0.2 percent on the day.
The euro also dropped to a two-week low against the yen at 105.45 yen and last traded at 105.56, down 0.8 percent. Investors expected the Japanese currency to benefit from safe-haven demand in view of Europe's debt problems.
Markets in most of Europe will be shut on Tuesday for May Day, while Japan celebrates Golden Week holidays for much of the week, keeping trading on foreign exchange markets subdued.
indiatimes.com
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