The euro recouped some of its recent losses versus the dollar and yen on Tuesday in New York as traders mulled better-than-expected German consumer sentiment data. The single currency moved lower against the pound.
The single currency rebounded to as high as 1.2988 against the greenback. The euro fell to a 5 1/2-week low of 1.2887 earlier in the week.
Treasury Secretary Timothy Geithner assured the Congressional Oversight Panel Tuesday that there is enough money left in the Troubled Asset Relief Program, the $700 billion financial rescue program, to stabilize the financial system. There is at least $134.4 billion in TARP funds left, Geithner said, while over $590 billion has already been committed.
The euro also climbed away from a 5 1/2-week low against the yen, moving near 127.90 in the mid-day. The European currency fell as low as 126.06 on Tuesday.
In other news, Japan's Finance Minister Kaoru Yosano said the government will sell an additional JPY 10.8 trillion government bonds to finance the JPY 15.4 trillion stimulus package announced on April 10 to shore up the economy.
The European currency dropped sharply against the sterling and moved near 0.8830 in mid-day trading. The euro had climbed to a six-day high of 0.8915 yesterday after it had hit a 2 1/2 month low of 0.8785 last week.
UK's annual inflation eased to 2.9% in March from 3.2% in February, the Office for National Statistics said. The annual rate came in line with economists' expectations and reached the lowest since March 2008.
Meanwhile, Bank of England member Andrew Sentance said the economy might emerge out of recession during the course of the year and into 2010. At present, the key challenge is to support demand and help lift the economy out of recession and head off the deflationary risks associated with it, he added.
On the economic front in the Eurozone, the Mannheim-based Center for European Economic Research, or ZEW, said its economic sentiment index for Germany rose to 13 in April from minus 3.5 in March. It was the sixth consecutive month of increase. Meanwhile, economists had expected the index to rise to 2.
Germany's Federal Statistical Office announced that the producer price index or PPI dropped 0.5% year-over-year in March, in contrast to a 0.9% rise recorded in the previous month. Economists were looking an increase of 0.1%. Destatis said the producer price fall in March was the smallest since September 2002, when prices declined 1.1%.
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