The euro fell to its lowest in 22 months versus the greenback on Thursday as the European purchasing managers’ index declined in month of May indicating reduction in private sector activity on highest pace since mid 2009. Moreover, Germany’s business climate index from Ifo Institute also fell to its lowest in six months.
Analysts think that keeping in view the updated economic data the improvement in euro zone’s first quarter’s gross domestic product does not seem that promising. Analysts also foresee that the single currency remain lower in coming sessions too and would recover after series of bearish sessions.
The euro fell to 1.2539 against the US dollar on Thursday as compared to 1.2578 on Wednesday’s North American trading session. The euro however gained against the Swiss franc to 1.2076 on the rumor that Swiss government will begin taxing deposits.
The dollar index DXY which measures the US dollar’s performance against its six major counterpart currencies gained to 82.342 as compared to 82.073 on Wednesday’s late trading hours. This was also the highest since 2010 for the dollar index.
Among other currencies, the British Pound declined 1.5664 against the US dollar compared to 1.5698 on prior trading session. The British Pound was lower in reaction to lowered forecasted GDP estimate which was updated to decrease of 0.3 percent as compared to earlier projected decline of 0.2 percent.
Against the Japanese yen, the greenback gained to 79.63 as compared to 79.49.
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