RTTNews - The euro recovered some early losses against the dollar and yen on Tuesday in New York as rising global stocks boosted risk appetite. The single currency remained near a multi-month high against the dollar and approached a two-week high against the yen.
The euro bounced back against the dollar and moved near 1.4000 in mid-day trading. The European currency had hit as low as 1.3860, compared to last week's multi-month high at 1.4050.
A Conference Board report showed that the consumer confidence index rose to 54.9 in May from an upwardly revised 40.8 in April. Economists had expected the index to edge up to 42.6 from the 39.2 originally reported for the previous month.
The euro inched slightly lower against the British pound, trading near 0.8775 in the early afternoon. Last week, the common currency reached a three-month low of 0.8721.
The European currency also bounced back against the Japanese yen and moved at 132.60 in the early afternoon, compared to a daily low of 131.47. Yesterday, the euro reached a 13-day high of 133.41.
The Bank of Japan said corporate service prices in Japan eased 0.2% in April compared to the previous month, following the 0.9% monthly gain in March.
In a detailed report, Germany's Federal Statistical Office said the largest Eurozone economy contracted 3.8% on a sequential basis in the first quarter, which was the fourth straight quarter of decline and the biggest fall since records began in 1970. In the fourth quarter of 2008, the gross domestic product had slipped 2.2%.
Meanwhile, year-on-year, Eurozone industrial orders plummeted 26.9% in March versus a revised 34.2% decline in February, the European Union's statistical office Eurostat revealed. Economists had predicted a 30.6% decline. This was the eighth straight month of decline in orders.
The European Central Bank said the euro area current account deficit totaled a seasonally adjusted EUR 6.5 billion in March, down from EUR 7.8 billion deficit in February. On an unadjusted basis, the current account deficit widened to EUR 3.5 billion in March from EUR 2.1 billion in February.
The forward-looking consumer confidence index for Germany came in at 2.5 points in June, unchanged from May, market research group GfK said. It matched economists' expectations. The German consumer climate has remained stable since March.
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