MOSCOW, May 4 – RIA Novosti / Prime. of the European currency declines against the dollar during trading on Monday on the back of weak data from the euro area statistics, according to the auction.
On As at 15.52 MSK, the euro against the dollar dropped to 1.1165 dollars per euro from 1.1198 dollars per euro. The dollar against the yen fell to 120.17 yen from 120.18 yen per dollar in the previous closing. The dollar index (the dollar to a basket of six currencies of countries – major trade partners of the United States) increased by 0.06% – up 95.34 points.
Earlier Monday Sentix research group published data on investor confidence in the euro area . The April index was 19.6 points, down from 20 points in April – the highest since August 2007. The data were worse than analysts’ forecasts, which are expected to reduce the index to only 19.8 points.
In addition, the research organization Markit Economics reported that the index of business activity in the field of industrial production (PMI) for the 19 eurozone countries, by final evaluation in April turned out to be at around 52 points, down from the March figure of 52.2 points. Experts do not expect changes in the rate from the original estimates in April of 51.9 points.
These weak data marked the end of 2010 the largest monthly growth rate of the euro against the dollar, writes Bloomberg.
“The recent rise in the euro was due to weak data from the US, and not the strengthening of the European economy … We continue to believe that the euro will remain weak (against the dollar – Ed.), until the economy (region) does not guarantee a strong currency”, – Agency quoted currency strategist at UniCredit Bank AG Milan Mialicha Roberto (Roberto Mialich).
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