The euro bounced back against the dollar and yen on Friday in New York as European stocks recovered some of yesterday's losses.
Traders had fled the higher-yielding currency after Dubai asked to postpone payments on US$60 billion in debt until May.
Eurozone economic sentiment strengthened in November for the eighth month in a row as the economy picks up strongly from recession. Still, the index remains at a very low level indicating that the healthy growth rates in the second half of this year would not possibly continue into 2010.
European Central Bank Governing Council member Ewald Nowotny reportedly said Friday Eurozone inflation is not expected to rise significantly in 2010.
The euro turned slightly higher versus the dollar, recovering its overnight losses. The European currency moved near 1.4970 after hitting as low as 1.4827.
The euro slipped off of a monthly high versus the British pound, trading near 0.9075. The European currency reached as high as 0.9133.
Bank of England policy maker Adam Posen told a regional newspaper Lincolnshire Echo that the British economy has "bottomed out".
The euro moved slightly higher against the yen after reaching a seven-month low yesterday. The 16-member currency edged up near 129.90 after hitting 126.87 on Thursday.
Economic sentiment for the 16-nation bloc rose to 88.8 in November from 86.1 in October, a monthly survey conducted by European Commission showed Friday. The index stood above the expected level of 88, but remained significantly below its long-term average of 100. The reading for October was downwardly revised from 86.2.
For comments and feedback: editorial@rttnews.com