Dollar supported by positive data

Published: 3 Jul at 6 AM Tags: Euro, Dollar,

The dollar is managing to hold on to recent gains after hitting an eight-week trough. The greenback has been given support by a string of positive data including solid figures from manufacturing and the auto industry and an increase in nonfarm payrolls. The statistics suggest that the US is recovering from the slump it experienced during the first quarter.

The dollar index has pulled back from an eight-week low of 79.740 on Tuesday by 0.1 per cent to 79.999. The dollar is also up from a six-week low against the yen to 101.87 yen.

After hitting a six-week high earlier the euro has fallen by 0.1 per cent to $1.3648. The easing comes as investors focus on jobs data from the US and a meeting due to be held at the European Central Bank. Analysts are not expecting the ECB to announce any major shift in policy after its interest rate cut last month.

Elsewhere the Australian dollar has dropped 0.7 per cent to $0.9377 following an eight-month high of $0.9505 seen on Tuesday. The fall comes after Glenn Stevens, Governor of the Reserve Bank of Australia, warned investors that they should not underestimate the potential for the Aussie to fall significantly.

The Australian currency has not been helped by disappointing retail sales.