Euro lifted by data; dollar hit by Fed warning

The European single currency rallied to 1.3078 dollars — its highest level since May 10. It later stood at 1.3066 dollars, up from 1.2992 dollars in New York late Wednesday.

Against the Japanese currency, the dollar dipped to 87.19 yen from 87.45 yen on Wednesday.

In trading in London, the euro changed hands at 1.3066 dollars against 1.2992 dollars on Wednesday, at 113.94 yen (113.63), 0.8343 pounds (0.8328) and 1.3742 Swiss francs (1.3726).

The dollar stood at 87.19 yen (87.45) and 1.0517 Swiss francs (1.0562).

The pound was at 1.5641 dollars (1.5592).

On the London Bullion Market, the price of gold rose to 1,166.75 dollars an ounce from 1,157 dollars an ounce on Wednesday.

The U.S. dollar was trading mixed against other Asian currencies. It fell to 32.03 Thai baht from 32.22 on Wednesday and to 8,990.94 Indonesian rupiah from 9,000. It firmed to 1.3658 Singapore dollars from 1.3627, to 48.81 Philippine pesos from 45.90, and to 1,185.55 South Korean won from 1,183.05. It was unchanged at 32.00 Taiwan dollars.

Business and consumer confidence in the 16-nation eurozone jumped in July to its highest level in more than two years, driven by regional powerhouse Germany, the European Union said Thursday.

The Economic Sentiment Indicator (ESI) produced by the European Commission rose to 101.3 points in the single currency area, an increase of 2.3 points from June and the highest level since March 2008.

The euro was boosted too by news of lower German unemployment, improving Italian business confidence and higher Spanish housing permits, according to Credit Agricole CIB analyst Frederik Ducrozet.

The euro “managed to break through the 1.3050-dollar level ahead of the ESI release,” he said.

The dollar was held back after U.S. durable goods orders fell for a second consecutive month in June while the Fed warned that the “modest” economic recovery was slowing in some parts of the United States.

The “modest” recovery is slowing in some parts of the country, the Federal Reserve said in its latest Beige Book report on Wednesday.

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