Euro Falls Against Major Rivals On Lower Risk Appeal

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The euro slipped against the other majors on Thursday in New York as falling global stocks reduced risk appeal. The European currency extended a multi-week low versus the dollar.

On the economic front, the Eurostat said the seasonally adjusted jobless rate for the Eurozone inched up to 9.6% in August from 9.5% in July. That was the highest rate since March 1999. It also matched economists' expectations. A year ago, the rate of unemployment was 7.6% in August.

Eurozone manufacturing sector improved more than initially estimated in September, a final report from Markit Economics said today. The final Markit Manufacturing Purchasing Managers' Index or PMI climbed to a sixteen month high of 49.3 in September from 48.2 in August. The index also stood above the flash estimate of 49.

The euro fell to a 2 1/2-week low against the dollar, continuing its recent down trend. The 16-member currency hit as low as 1.4517 after hitting a yearly high of 1.4843 last week.

In the U.S., the Labor Department said that initial jobless claims rose to 551,000 for the week ended September 26. This was up 17,000 from the previous week's revised total of 534,000.

Later, the Institute for Supply Management said its main index of manufacturing activity slipped to 52.6 for September, down from a reading of 52.9 in the previous month. Any reading above 50 indicates expansion in the sector.

The euro dropped against the sterling and moved further from the six-month high reached earlier this week. The common currency moved at 0.9110, compared to the week's high crossing of 0.9300.

UK manufacturing sector dropped further in September, a key survey by the Chartered Institute of Purchasing and Supply and Markit Economics said today. The CIPS/Markit manufacturing Purchasing Managers' Index or PMI dropped to 49.5 in August from 49.7 in the previous month. A reading above 50 indicates expansion, while a reading below 50 signals a contraction.

The euro slipped to a three-day low of 130.11 against the yen. If the European currency gets below 1.2978 it will hit a 2 1/2-month low.

Sentiment among large manufacturers in Japan was better in the third quarter of 2009, the Bank of Japan said today in its quarterly Tankan Survey, gaining for the second straight quarter.

(Market News Provided by RTTNews)