Euro Bounces Back Versus Dollar, Rises Against Yen And Sterling

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The euro recovered early losses against the dollar on Monday in New York as recovering global stocks refueled risk appeal. The common currency also moved higher against the pound and yen.

European Central Bank member Axel Weber told the German newspaper Frankfurter Rundschau the German economy will reach the level of prosperity it had seen in 2008 possibly by 2013. He added that the freefall phase has stopped.

The euro bounced back from a six-day low against the U.S. dollar and moved slightly below its overnight levels. The pair moved near 1.4675 after the 16-member currency fell as low as 1.4610. The euro reached a yearly high of 1.4766 last week.

In the U.S., the Conference Board said its leading economic index rose 0.6 percent in August following an upwardly revised 0.9 percent increase in July. Economists had expected the index to increase by 0.7 percent compared to the 0.6 percent increase originally reported for the previous month.

The euro leveled off near a five-month high against the pound. The European currency moved at 0.9055 after earlier touching 0.9076.

The latest Quarterly Bulletin from the Bank of England showed today that sustainable rebalancing in the UK and the global economy depend on structural forces, including the extent to which consumers in deficit nations remain restrained and domestic demand in surplus countries pick up.

The euro climbed to a four-week high of 135.46 against the yen before cooling off. The European currency backed to 135.00 in the early afternoon.

(Market News Provided by RTTNews)