Euro rises after surprise rise in German business mood
By
Bloomberg
LONDON (MarketWatch) - The euro climbed against most major currencies on Monday after the closely watched Ifo survey showed German business confidence unexpectedly improved in November.
The shared currency exchanged hands at $1.2409, up from $1.2392 late Friday in North American trade. The upbeat trading mood came after Ifo Institute said its monthly business confidence survey rose to 104.7 in November from 103.2 in October, breaking a string of six-straight monthly declines. Economists surveyed by The Wall Street Journal had expected a reading of 103. European stocks were also higher after the data.
Keeping gains for the euro in check, however, were comments from European Central Bank President Mario Draghi who, in a dovish speech last week, said it was necessary to bring eurozone inflation up to the ECB's target 'without delay.' The remark sparked further speculation that the ECB will embark on full-scale quantitative easing, which likely would weaken the euro.
In other currency pairs, the yen fell against the dollar, with the greenback buying ¥118.245, up from ¥117.72 Friday.
The ICE dollar index which measures the dollar against a basket of six other currencies, slipped to 88.23 from 88.3070. The WSJ Dollar Index rose 0.1% to 80.49.
The Aussie dollar dropped 0.5% to 86.29 U.S. cents, while the pound rose to $1.5690 from $1.5654 on Friday.
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