Euro, pound weaker on data

Euro, pound weaker on data

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The euro and the pound were both weaker Thursday after German business confidence and UK retail sales were both reported lower.

The Ifo Institute reported that business confidence in Germany was at 97.5 on its business climate index in July, down from 101.2 in June, the biggest drop since September 2001, making it less likely that the European Central Bank will raise interest rates again this year.

It cost $1.5673 to buy a euro in late morning trade in New York while a euro was worth ¥168.6258.

Meanwhile, the Office for National Statistics in London said that retail sales in the UK were down by 3.9 percent in June, more of a decline than had been expected, prompting concerns that the economy there could enter a recession.

The pound traded at 79.03p to the euro while it took $1.9859 to buy a pound.

The New Zealand dollar weakened after the Reserve Bank of New Zealand cut interest rates to 8 percent, a decline of a quarter of a percentage point and the first reduction in rates there in five years, and on speculation that another rate cut could come as soon as September.

At late morning in New York, the New Zealand dollar was worth 74.14 cents US after going as low as 74.04 cents US while it took ¥79.896 to buy the kiwi.

The Australian dollar also lost ground after commodities prices declined, with the Aussie trading at 95.88 cents US and ¥103.28 before noon in New York.

The Brazilian real benefited after the central bank there raised interest rates to 13 percent Wednesday, a gain of three quarters of a percentage point and said that rates could go even higher.

The real traded at R$1.5760 to the dollar in New York at late morning.