FX round-up: Dollar broadly higher after data

Date: Tuesday 16 Mar 2010

The dollar rose against the euro on Monday supported by better than expected data on the US manufacturing sector.

The New York Federal Reserve Bank's Empire State Manufacturing Index fell to 22.9 in March from 24.9 in February, a bit better than analyst forecasts.

The dollar index, which measures the US currency against a basket of six others, rose 0.4% to 80.25.

The euro came under pressure on disappointment about the outcome of a meeting in Brussels between euro zone finance ministers about a potential aid package for Greece. In a published statement ministers said an agreement had been made on the technicalities of a rescue deal. The euro fell to 1.3674 from $1.3760 late Friday.

The yen firmed slightly against the dollar as investors turned to the Japanese currency’s safe haven qualities.

Sterling fell 1% to $1.5044 as investors questioned the economic outlook for the UK. Comments from Bank of England policymaker Kate Barker that the UK may contract again dented confidence while gloomy housing data clouded sentiment further.

Figures from Rightmove showed UK house prices appear to have run out of steam as asking prices rose by the smallest amount on record during March.

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