Dollar extends losses, plays at least seven months against the yen

The dollar fell on Thursday to a seven-month low against the yen, amid a general decline because investors tried to curb their losses because they suspect about the dollar's lowest level of the year. The dollar fell to a floor of 87.79 yen, its lowest level since December 2009, according to Reuters data.

The loss of the greenback against the yen led to the dollar index, which measures its performance against a basket of six currencies of reference, sank to its session low of 85.516 at the same time, the yen climbed across the board by its status as a refuge currency, taking the Australian dollar to lose nearly 1 percent on the day at 73.35 yen

Euro yields since more than one month against the dollar, pound falls

The euro eased from a peak a month against the dollar on Tuesday, the yuan at a low a day after China's pledge to loosen its currency risk encouraged demand, while the pound fell to a session low following the announcement of its new fiscal budget.

The rally Monday at the sight of the euro and the currencies of high risk, including the Australian dollar was sold as investors recognized that a more flexible yuan would not lead to a sharp appreciation of Chinese currency.

"A moderate appreciation of the yuan will not change the situation of China's current account and does not mean the end of global imbalances," said Ulrich Leuchtmann, currency strategist at Commerzbank in Frankfurt.

"Therefore, no need for a significant impact on the euro / dollar and dollar / yen. There should be a reassessment to have a big impact on," he said.

The midpoint of the yuan was set at 6.7980 per dollar on Tuesday, the highest since its revaluation in July 2005, but the Chinese currency Monday's gains erased by large purchases of dollars from state banks.

At 1134 GMT, the euro was down 0.2 percent at $ 1.2271, after falling to 1.2259. The single currency back from its peak of $ 1.2490 Monday, its highest level since May 24 after failing to pass the $ 1.25 level.

Dealers said the euro would face more losses, but technical analysts argued that the level of short-term support is at $ 1.2253.

The euro reacted little to the index of German Ifo business climate, which rose slightly to its maximum of two years in June.

"The positive surprise Ifo index did not change the negative tone of the market. The fact that the expectations component was bassist did not help to support the single currency," said analysts at Credit Agricole CIB in a note.

The euro was down 0.6 percent against the Japanese currency to 111.29 yen.

The Swiss franc extended gains to a record high against the euro, after the Swiss central bank vice president argued that the institution did not have to intervene in the market for now.

The euro slipped to a low of 1.3618 francs, according to Reuters data.

The pound fell to a session low of $ 1.4692, after the British Finance Minister, George Osborne, announced the first budget the new government, expected to be the tightest in decades because of the promise of reduce the fiscal deficit.

The dollar index was up 0.2 percent to 86.129, rebounding from a one-month low on Monday. Analysts said this suggested further progress in the short term.

But the dollar lost almost 0.3 percent to 90.55 yen.

Yen and dollar fall, euro rises on worries about Greece

The yen and the dollar fell on Monday against the euro and high yielding currencies, as a jobs data better than expected U.S. on Friday and an easing in concerns drove the Greek debt investor demand for the risk.

The euro gained after encouraging remarks from key monetary authorities on the problems of debt in the euro zone. French President Nicolas Sarkozy vowed on Sunday that euro zone countries would help to Greece if they worsen their financial problems.

However, Managing Director International Monetary Fund, Dominique Strauss-Kahn, told Reuters it was unlikely that Greece's financial problems will spread to other euro area countries with high levels of debt.

Trust is kept up after a data on Friday showed job losses were less than expected, raising the view that the U.S. may be about creating jobs and affecting considered a refuge currency like the dollar and the yen.

"Greece is taking a breather from a market perspective, while the appetite for risk is driving the market. This gave the euro a bit of renewed support," said Niels From, analyst at Nordea in Copenhagen.
At 1049 GMT the euro was up 0.2 percent at $ 1.3642. Traders said that the level of short-term resistance was close to 1.3712, its highest March 4.

The dollar index was down 0.1 percent at 80.355.
Against the yen, the euro gained 0.2 percent to 123.25 yen, after hitting a two-month 123.80 yen on electronic trading platform EBS earlier.

Euro rises vs dollar on U.S. employment report expected

The euro rose against the dollar Friday in a small volume, pending the report on the state of the U.S. labor market, while the yen fell after sources said the Bank of Japan may consider more monetary easing measures.

The data on U.S. payrolls, which will be published at 1330 GMT, give clues about the pace of economic recovery, although bad weather in February could affect the numbers.
The consensus of analysts polled by Reuters was for a loss of 50,000 jobs in February.

Analysts believe that a figure better than expected boost to the dollar, while a worse than expected could be dismissed as the effect of the snowstorms, which would limit any adverse impact on the currency.
"The market is looking for signs of impending cyclical upturn in the U.S. and a number on the payroll could point to that," said Peter Wuyts, analyst at KBC in Brussels.

"But the climate is difficult to predict the numbers do not surprise me to market uncertainty following the release, implying that the current pattern of consolidation in the euro / dollar would continue into next week," he added.
In London, the euro was up 0.1 percent against the dollar at $ 1.3588, in a small volume before the employment report, while the dollar index was steady at 80.547.

Wuyts KBC said the strengthening of the euro over a minimum of nine months and through $ 1.3432, reached this week, suggests that the market has now absorbed most of the bad news coming from Greece.

Athens sold on Thursday with a high demand a 10-year bond, a day after he announced new austerity measures.

However, concern still awaiting a meeting between Greek Prime Minister George Papandreou, and German Chancellor Angela Merkel.Meanwhile, the yen fell after sources said the Japanese central bank would discuss this month a new flexibility in its monetary policy amid government pressure to exit deflation.

"Statements on the Bank of Japan should have an impact on the yen and believe that the dollar / yen will be around 90.30 yen in the next couple of days," said Carl Hammer, a strategist at SEB in Stockholm.
The euro rose 0.3 percent to 121.36 yen while the dollar appreciated to 89.31 percent as yen, recovering from a three-month low of 88.14 yen reached the previous day.

France says strong euro is a handicap, but has benefits

The strength of the euro against the dollar is a disadvantage, but also has certain benefits, a spokesman said Wednesday the French government.

Luc Chatel said that President Nicolas Sarkozy Gallic propose "a new international monetary organization to better reflect today's world" the Group of 20 richest nations in the world in 2011, when France takes over the presidency of the G-20.

Euro touches a maximum of 14 months versus dollar after EU production data

The euro hit a 14-month high against the dollar on Wednesday, boosted by data showing an acceleration in industrial production in the euro zone, while the dollar remained under selling pressure.
Industrial production in the euro zone rose in August at the monthly comparison and July was revised higher. Industrial production rose 0.9 percent in the month, which fell 15.4 percent year level.

The euro rose to a maximum of $ 1.4913 on trading platform EBS, its highest elevation since August 2008.
The dollar index fell to 75.452, also its lowest level since August last year.