RTTNews - The euro remained close to near-term highs against the dollar and yen and higher global equities left the appeal for higher-yielding currencies strong. Meanwhile, the common currency surged to a multi-month best high against the sterling.
The euro received a boost as stronger-than-expected recovery in Eurozone industrial new orders led traders to bet that the economy is clearly moving away from recession.
Industrial new orders in the 16-nation bloc increased 3.1% month-on-month in June, after falling 0.5% in May, the Eurostat reported Monday. Growth in June far exceeded the expected 1.7% rise. The new orders for May was revised from the 0.2% fall reported initially.
The euro remained level against the dollar near a 2 1/2-week high. The pair moved at 1.4335 in early afternoon trading, compared to last week's high crossing of 1.4375.
There was no major economic news from the U.S. scheduled for Monday.
The euro climbed to a 2 1/2-month best of 0.8726 versus the sterling. The 16-member currency has been trending higher for about a week.
The Confederation of British Industries quarterly survey found that in business and professional services, the value and volumes of business both rose very slightly on the previous quarter for the first time since May 2008. However, both measures remain below normal for the seventh consecutive quarter.
The euro also remained near a 10-day best versus the yen, moving near 135.50. The European currency reached as high as 136.08 in early morning deals.
Monetary policy should avoid accelerating a bubble through creating unfounded expectations for the continuation of low interest rates, Governor of the Bank of Japan, Masaaki Shirakawa said on Saturday at a forum hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming. Monetary policy alone cannot or should not stave off a bubble.
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