Euro re­bounds af­ter Greek stock plunge

The China Post - - BUSINESS INDEX & -

The euro mod­estly re­bounded Tues­day fol­low­ing a drop in New York as a plunge on the Greek stock mar­ket re­vived wor­ries about Athens’ fu­ture in the eu­ro­zone.

The sin­gle cur­rency edged up to US$1.0966 and 135.95 yen Tues­day af­ter­noon from US$1.0954 and 135.82 yen in New York.

The U.S. dol­lar lost ear­lier gains to sit at 123.98 yen from 123.99 yen, with the unit held back by weak U.S. and Chi­nese man­u­fac­tur­ing data.

Traders were also cau­tious ahead of a key U.S. jobs re­port later this week.

Stan­dard & Poor’s low­ered its out­look for the EU from sta­ble to neg­a­tive on Mon­day af­ter the bloc’s sup­port for Greece and fol­low­ing Bri­tain’s de­ci­sion to vote on leav­ing the EU.

Data on Mon­day showed slightly weaker U.S. man­u­fac­tur­ing ac­tiv­ity and a mod­est gain in con­sumer spend­ing.

The fo­cus is now on Fri­day’s jobs re­ports as in­vestors look for the latest clues about the tim­ing of a Fed­eral Re­serve in­ter­est rate hike — a plus for the U.S. dol­lar.

Mar­kets are ex­pect­ing a rise as early as Septem­ber, but the pol­i­cy­mak­ers have said any move de­pends on signs of strength­en­ing in the world’s top econ­omy.

Sep­a­rately, a key gauge of Chi­nese man­u­fac­tur­ing ac­tiv­ity plunged to a two-year low in July, ac­cord­ing to fig­ures pub­lished Mon­day, sug­gest­ing the world’s sec­ond-largest econ­omy is strug­gling.

The dol­lar was mostly stronger against other Asia-Pa­cific cur­ren­cies.

It rose to SG$ 1.3795 from SG$1.3747 on Mon­day, to 45.73 Philip­pine pe­sos from 45.70 pe­sos and to 1,169.45 South Korean won from 1,165.85 won.

It also firmed to 35.12 Thai baht from 35.03 baht and to 63.98 In­dian ru­pees from 63.95 ru­pees.

But the green­back slipped to 13,495 In­done­sian ru­piah from 13,502 ru­piah.

The Aus­tralian dol­lar firmed to 73.28 U.S. cents from 72.97 cents, while the Chi­nese yuan fetched 19.97 yen against 19.98 yen.

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