Monday June 29, 11:45 AM
Dollar higher before week's economic data
LONDON (AFP) - The dollar rose against the euro and the yen on Monday ahead of a series of key economic reports and a central bank meeting in Europe due this week.
In late morning trading here, the European single currency fell to 1.4012 dollars from 1.4064 dollars in New York late on Friday.
Against the Japanese currency, the dollar gained to 95.43 yen from 95.22 yen on Friday.
Investors were waiting key economic data due this week, with the focus on a US jobs report on Friday which will give a clearer picture of recovery prospects for the world's largest economy.
Although the pace of job losses in the United States appears to have slowed recently, the unemployment rate hit a 26-year high of 9.4 percent in May.
The European Central Bank was meanwhile expected to keep its lending rate unchanged at one percent when it meets on Thursday.
"Like disappointed children tapping on the perspex of the inactive reptile display at the zoo, markets are hoping some of the top tier releases this week will rattle the currency market out of its torpor," said Daragh Maher, deputy head of global foreign exchange strategy at Calyon.
Traders learned on Monday that European business and consumer confidence firmed in June for the third month running albeit from depressed levels.
The European Commssion's economic sentiment indicator for the 16-nation eurozone rose to 73.3 points in June from 70.2 points, climbing further away from a record low 64.6 points reached in March.
Meanwhile, in the 27-nation European Union the indicator rose to 71.1 points from 67.9.
"The increase observed at sector and country level is mainly driven by improving expectations, as the main economic actors seem to be gaining confidence that the crisis is easing," the commission said in the report.
Market players were meanwhile also looking ahead to a closely watched survey of Japanese business confidence due out on Wednesday.
The Bank of Japan's quarterly "Tankan" survey is expected to show an improvement in sentiment among Japan's major manufacturers from a record low the previous quarter, helping to underpin improving investor confidence.
Government numbers released on Monday showed that Japanese industrial output rose by 5.9 percent in May from the previous month, matching the previous month's growth, which was the fastest in half a century.
The data "underscores the view that the Japanese economy hit bottom in the April-June quarter," said Hachijuni Bank forex strategist Yoshifumi Suzuki.
"But with consumption and wages still sluggish, it will be difficult to go so far as to say that a recovery will take place in the following quarter."
In trading here on Monday, the euro was changing hands at 1.4012 dollars against 1.4064 dollars late on Friday, 133.58 yen (133.95), 0.8494 pounds (0.8509) and 1.5257 Swiss francs (1.5226).
The dollar stood at 95.43 yen (95.22) and 1.0900 Swiss francs (1.0825).
The pound was at 1.6483 dollars (1.6521).
On the London Bullion Market, the price of gold fell to 939.13 dollars an ounce from 942 dollars an ounce late on Friday.
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