RTTNews - The euro was little-changed on Tuesday in New York as global stocks hovered near the unchanged mark, limiting risk appeal. The common currency remained near a 7 1/2-month high against the dollar.
The European currency held most of its sharp gains from the day before against the lower-yielding greenback and Japanese yen. Global stocks rallied yesterday, fueling risk appetite.
Traders await the European Central Bank's interest rate decision later this week. The ECB is widely-expected to leave rates unchanged, but traders will watch for comments about alternative measures to boost the quantity of money in the struggling economy.
In other economic news, Eurozone producer prices registered a record annual fall in June on energy costs, indicating more consumer price easing in the pipeline.
The euro remained near its highest levels of 2009 against the U.S. dollar. The European currency moved near 1.4410 in the early afternoon compared to yesterday's high crossing of 1.4444, the euro's best level since mid-December.
In economic news, a Commerce Department report showed that personal spending rose 0.4% in June following a revised 0.1% increase in May. Meanwhile, personal income fell by 1.3% in June after increasing by a revised 1.3% in the previous month.
The euro pared early weakness against the yen and re-approached its 7 1/2-week high from yesterday. The common currency touched as high as 137.52, compared to yesterday's high of 137.68.
The Bank of Japan said today that the monetary base in Japan was up 6.1 percent on year in July to 93.209 trillion yen, following the 6.4 percent annual expansion in June. Seasonally adjusted, the monetary base fell 6.9 percent on year to 93.918 trillion yen.
The euro was also little-changed against the British pound, moving near 0.8510. The European currency touched a five-week low of 0.8461.
UK's CIPS/Markit Construction Purchasing Managers' Index rose to 47 in July, a survey from the Chartered Institute of Purchasing & Supply and Markit Economics showed today. Economists were expecting the index to rise to 45 from 44.5 logged in June. However, the index stood below the neutral level.
The European Union's statistics office Eurostat said in a report that industrial producer prices dropped by a record 6.6% year-over-year in June compared with a 5.9% fall in the previous month. The May figure was revised from a 5.8% decline reported initially. The annual decline came in line with economists' expectations.
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