RTTNews - The euro slipped again versus the dollar and yen as lower global equities added risk aversion. Meanwhile, the European currency recovered some of yesterday's slump versus the pound.
The common currency had rebounded in Thursday's trading, touching a weekly high against the dollar and also rising against the yen. In general, trading has been uncertain in recent weeks as investors ponder the possibilities of economic recovery.
The euro edged dropped to 1.3880 against the dollar in early morning trading. The common currency had reached as high as 1.4071 yesterday after hitting a two-week low of 1.3832 on Wednesday.
The euro slipped toward an eight-week low versus the yen, reaching 128.34. If the European currency gets below 126.99, it will reach its lowest level since mid-May.
An index measuring the prices of domestic corporate goods fell 6.6 percent on year in June, the Bank of Japan said today, marking the fastest pace of decline on record. Analysts had been expecting a fall of 6.4 percent on year following the revised 5.5 percent decline in May. Originally, the decline had been reported at 5.4 percent.
The euro climbed against the sterling after hitting a weekly low yesterday. The common currency rose to 0.8602, compared to Thursday's low crossing of 0.8536.
UK's output prices fell 0.2% month-on-month in June after rising 0.4% in May, the Office for National Statistics said Friday, beating expectations for a 0.3% increase.
On the economics front, Germany's wholesale price index fell 8.8% year-over-year in June after falling 8.9% in May, the Federal Statistical Office said Friday. Prices fell for the eighth consecutive month in June. On a monthly basis, wholesale prices rose 0.9% in June following increases of 0.1% each in May and April.
The French current account deficit narrowed mainly due to a contraction in goods trade deficit to EUR 3.6 billion from EUR 4.4 billion in April. In addition, services surplus rose to EUR 1.4 billion from EUR 1 billion recorded in April and revenue increased to EUR 2.2 billion from EUR 2.1 billion. Moreover, the deficit in current transfers remained unchanged at EUR 2.1 billion.
Meanwhile, U.S. President Barack Obama spoke after a very productive G8 Summit in L'Aquila, Italy Friday morning, insisting it is premature to unwind economic stimulus plans.
We must continue to work to spark economic growth, said Obama, while stressing the importance of a return to fiscal sustainability. The world has avoided a major global collapse, but the economy is still in recovery mode.
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