Euro surging against weak dollar

The dollar fell to the lowest levels for months against the euro today as upbeat economic data reduced demand for the safe-haven US currency.

The euro rose to a near nine-month high of $1.4627 at one stage today, before dropping back to trade at around £1.4609.

Analysts said that Chinese economic numbers fuelled dollar weakness today and investors risk appetite, underlining hopes of a global economic recovery.
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Most analysts expect the dollar to weaken further amid a growing sense that recovery from the worst global economic crisis in decades is taking root.

With the economic outlook brightening, traders tend to shun the dollar in favour of riskier currencies that appeared more profitable, like the euro.

Meanwhile, on the London Bullion Market, the price of gold jumped to $998.88 an ounce from $990.75 an ounce last night. Earlier in the week, it had burst through the $1,000 level.

Posted in: Business-Economic,World News