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Euro dips on election concerns, trade tensions support dollar


Reuters


By Karen Brettell

NEW YORK, May 16 (Reuters) - The euro dropped to its lowest level in more than a week against the dollar on Thursday on concerns about next week's European parliamentary elections, while the dollar was buoyed by ongoing U.S.-China trade tensions.

The euro has been hurt in recent days by Italian Deputy Prime Minister Matteo Salvini'scomments that European Union rules harm the country.

"Italy remains one of the factors keeping euro downside risks high," said Credit Agricole FX strategist Manuel Olivieri.

The dollar has benefited as a safe-haven currency even as the United States and China remain locked in a trade dispute.

The euro was boosted on Wednesday by reports that U.S. President Donald Trump is expected to delay a decision on imposing tariffs on imported cars and parts by up to six months, avoiding opening yet another front in his global trade battles.

Until a delay is official, however, investors remain nervous about a new trade war and how it may affect the global economy.

"The major theme is, is there enough room to fight multiple trade wars at once?" said Mark McCormick, North American head of FX strategy at TD Securities in Toronto.

"We had some green shoots of global economic stabilization the last five months and now I think the concern is whether or not renewed trade wars will sap some of that confidence and whether or not that, along with some of the slowdown we're seeing in the U.S. economy, will tip the global economy back into a less stable state," McCormick said.

The Chinese yuan weakened as far as 6.9299 against the dollar on Thursday, its weakest level since Nov. 30.

The greenback was also bolstered on Thursday by data that showed U.S. homebuilding increased more than expected in April, while a Philadelphia Fed index of business conditions gained in May.

The Australian dollar weakened to its lowest level since Jan. 3 after data showed that the country's unemployment rate rose to its highest in eight months, cementing views its central bank may be forced to lower borrowing costs soon to stimulate the economy.

Sterling dropped to the lowest level since Feb. 15 as Britain's Prime Minister Theresa May battled to keep her Brexit deal, and her premiership, intact amid growing fears of a disorderly departure from the EU.

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Currency bid prices at 1:47PM (1747 GMT)

Description

RIC

Last

U.S. Close

Previous

Session

Pct Change

YTD Pct

Change

High Bid

Low Bid

Euro/Dollar

EUR=

$1.1176

$1.1200

-0.21%

-2.55%

+1.1225

+1.1173

Dollar/Yen

JPY=

109.8000

109.5800

+0.20%

-0.42%

+109.9600

+109.3400

Euro/Yen

EURJPY=

122.73

122.74

-0.01%

-2.77%

+122.9600

+122.5500

Dollar/Swiss

CHF=

1.0094

1.0087

+0.07%

+2.85%

+1.0106

+1.0074

Sterling/Dollar

GBP=

1.2802

1.2848

-0.36%

+0.35%

+1.2861

+1.2789

Dollar/Canadian

CAD=

1.3441

1.3437

+0.03%

-1.44%

+1.3449

+1.3400

Australian/Dollar

AUD=

0.6894

0.6927

-0.48%

-2.20%

+0.6933

+0.6894

Euro/Swiss

EURCHF=

1.1283

1.1296

-0.12%

+0.26%

+1.1317

+1.1283

Euro/Sterling

EURGBP=

0.8730

0.8721

+0.10%

-2.83%

+0.8749

+0.8715

NZ Dollar/Dollar

NZD=

0.6540

0.6561

-0.32%

-2.64%

+0.6582

+0.6540

Dollar/Norway

NOK=

8.7379

8.7141

+0.27%

+1.15%

+8.7412

+8.6830

Euro/Norway

EURNOK=

9.7675

9.7633

+0.04%

-1.40%

+9.7780

+9.7347

Dollar/Sweden

SEK=

9.6320

9.5991

+0.14%

+7.45%

+9.6343

+9.5780

Euro/Sweden

EURSEK=

10.7682

10.7530

+0.14%

+4.91%

+10.7745

+10.7381






This article appears in: Politics , Stocks , World Markets




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