Euro down in relation to US dollar, European currencies

Story link: Euro down in relation to US dollar, European currencies

The euro was weaker on Tuesday amid concerns that the new coalition government in Germany will not go forward with reforms in the tax system and labor market there.

The US dollar gained 0.5 percent to $1.2007 in relation to the euro while traders awaited the release of the minutes of the September 20 meeting of the US Federal Reserve, as interest rates continue to drive sentiment in regards to the greenback.

Elsewhere, the euro was down 0.1 percent to SFr1.5475 versus the Swiss franc, dropped 0.2 percent to SKr5.3342 in relation to the Swedish krona as Swedish unemployment fell to 5.1 percent in September, and lost 0.6 percent to NKr7,8327 against the Norwegian krone. In addition, the Polish zloty gained 0.3 percent on the euro to 3.8685 zlotys to the euro, while the Hungarian forint also was up 0.3 percent to Ft249.65 versus the euro.

Sterling fell 0.4 percent to $1.7485 in relation to the US dollar but was unchanged against the euro at £0.6868. The British currency was again under pressure as September’s trade deficit reached a record £5.3 billion and the British Retail Consortium giving little hope of a recovery in consumer spending in its September survey.

The yen, meanwhile, sat at ¥114.18 versus the US dollar and at ¥137.23 against the euro.

There were interest rate changes in South Korea and in Turkey, with the Korean rate jumping 25 basis points to 3.5 percent and the Turkish rate falling by 25 basis points to 14 percent. Both moves were expected.