Disappointing data out of Europe Thursday reversed the dollar's three-day downward trend against the euro.
The euro slid to $0.8755 today from yesterday's close of $0.8806 after news that Europe's M3 money supply had increased more than expected. This morning's report was disappointing because it quelled hopes for a near-term interest rate cut by the
European Central Bank
, in turn forcing the euro lower.
The dollar is still mired near three-month lows against the Swiss franc and seven-week lows against the British pound as a result of a tough earnings season and a dim economic outlook. But the dollar did gain against the pound Thursday. The pound traded recently for $1.4258, down from $1.4279 at last close.
The dollar had little reaction to this morning's U.S. economic data, which included jobless claims, labor costs and durable goods numbers.
The U.S. currency gained ground against the yen Thursday, ahead of Sunday's election for the upper house of Parliament in Japan. The dollar rose to 123.92 yen from 123.59 yen at yesterday's close. The euro, though, slid to 108.55 yen on Thursday, down from Wednesday's close of 108.81 yen. The greenback dropped slightly against both the Australian and Canadian currencies Thursday.