NEW YORK: The euro resumed its fall Tuesday, passing the $1.28 line for the first time since July 2013 as fresh data showed another slip in business confidence in Europe.
The Ifo indicator of business confidence in the German economy, the eurozone's largest, fell to its lowest level in 17 months, fanning worries about the region's stuttering recovery.
“Companies' assessment of their current business fell again. And their expectations for the next six months hit their lowest level since December 2012,” said Ifo president Hans-Werner Sinn.
“The German economy is no longer running smoothly.”
The dollar also powered up against the yen and pound, perhaps helped by a buoyant report on new-home sales in the United States last month that partly reassured economists worried about a sag in the housing sector.
“Sentiment against the (euro) unit remains negative, but further selling may have to come from better US data as the gulf in economic performance between the eurozone and US continues to widen,” said Boris Schlossberg of BK Asset Management. (AFP)