Euro in decline while dollar strengthens

Story link: Euro in decline while dollar strengthens

The euro continued to decline against other currencies on Friday, falling 0.8 percent for the week to $1.2130 in relation to the US dollar, a nine-month low.

It also declined 0.1 percent for the week to a one-year low of ¥131.51 against the yen. The euro also fell 0.8 percent on the week in relation to sterling, to £0.6690, a ten-month low, and it was down 0.8 percent to NKr7.8358 against the Norwegian krone. That was a two year low.

The euro was affected by new French data showing industrial production down 0.3 percent in April, a larger than expected drop and the third consecutive month of decline.

Also, the French trade deficit rose from €2.34 billion in March to €3.22 billion in April as a result of record imports.

The US trade deficit also grew in April, but at a lesser rate than had been expected.

The April US trade deficit was $57 billion, while it had been $53.6 billion in March. This data produced hope that the trade deficit might be in the process of stabilizing.

The US dollar was up 0.7 percent for the week to ¥108.40 in relation to the yen and gained 0.2 percent to C$1.2492 against the Canadian dollar.

However, the Australian dollar was up 0.9 percent to $0.7624 for the week in relation to the US dollar, and the New Zealand gained 1.1 percent on the US dollar to $0.7063.