Euro rises after recent falls

Story link: Euro rises after recent falls

The euro looked like it was stabilizing on Thursday as it rose 0.5 percent in relation to the dollar to $1.2263 after it fell to an eight-month low of $1.2168 overnight on the news that Dutch voters had rejected the European Union constitution on Wednesday.

Some analysts think the dollar will soon continue its earlier slide in relation to the euro. One analyst said that the weakness of the dollar would trump negatives in the eurozone, while another said that the chances of the eurozone breaking up were about the same as the possibility that Texas leaving the United States.

The euro also rose in relation to sterling and the yen. It gained 0.3 percent to £0.6756 in relation to sterling and was up 0.2 percent to ¥132.86 against the yen.

Meanwhile the dollar fell to $1.8153 in relation to sterling on Thursday after hitting a new seven-month high of $1.8085 overnight.

The dollar also lost 0.2 percent in relation to the yen to ¥108.33. The Australian dollar gained 0.4 percent to $0.7532 in relation to the US dollar as new data showed that the Australian trade deficit fell by half in April.