FX round-up: Euro rises against dollar

Date: Monday 15 Mar 2010

The dollar skidded to a one-month low against the euro as better than expected US retail sales data spurred risk appetite.

Strong euro zone economic data gave the euro a lift while fears about Greece’s debt crisis ease.

The US Commerce Department said retail sales rose unexpectedly in February by 0.3% on the previous month.

Meanwhile euro zone industrial production saw its strongest monthly increase on record in January, up 1.7%, lifting confidence about economic recovery in the area and pushing the euro higher against major currencies.

The euro rose to a high of $1.3795 before easing back to $1.3760 in late trading. The dollar index, which measures the US currenct against a basket of six others, fell to 79.830 from 80.543 on Thursday.

The yen weakened against the dollar after the US retail sales data, falling to 90.51 Japanese yen as risk aversion reversed.

Sterling punched through gains on Friday amid a broadly weaker dollar and after a recent poll indicated that the Conservatives are likely to win the upcoming General Election by a majority. The pound has been pressured by concern about a hung parliament.

Sterling pushed through resistance at $1.5130 to $1.5174. The euro fell 0.2% at 90.62p.

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