adminLONDON. — The euro strengthened from a six-week low against the dollar after a report showed manufacturing in the currency bloc expanded for a fourth month in October.
The 17-nation currency advanced for the first time in three days versus the yen amid speculation the European Central Bank will refrain from cutting interest rates at a meeting this week. Australia’s dollar rose versus all its 16 major peers as retail sales increased, adding to prospects the Reserve Bank will desist from lowering borrowing costs tomorrow.
“You get some slightly stronger data after the euro has fallen anyway, so it’s natural that people will then question if the ECB will do something this week,” said Neil Mellor, a foreign-exchange strategist at Bank of New York Mellon in London. “The euro did come off the lows from September so it could be technically oriented as well. We still favour euro going higher versus the dollar into the end of the year.”
The euro climbed 0,2 percent to US$1,3509 at 10:32am London time after falling to US$1,3442, the weakest level since September 18. The common currency gained 0,2 percent to 133,29 yen. The dollar was little changed at 98,69 yen. The euro will rise toward $1.40 by year-end as the Federal Reserve holds off from reducing its asset-purchase program, Bank of New York Mellon’s Mellor said. — Bloomberg.
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