Eurozone rate speculation limits losses for euro

Story link: Eurozone rate speculation limits losses for euro

The euro was only slightly lower versus the US dollar in late morning trade in New York after it was reported that an official of the European Central Bank had said the Bank is still worried about inflation.

The reports raised sentiment that the ECB will hike interest rates again this year.

The euro was worth $1.4989 while the shared currency also declined to ¥164.8715 in relation to the Japanese yen.

The greenback was hurt ahead of a Commerce Department report, due Wednesday, which is expected to show US retail sales down in July, with the dollar falling against the yen to ¥109.9950 although the Russian rouble fell to 24.354 to the dollar on fighting between Georgia and Russia.

The conflict between Russia and the former Soviet province sent the Swiss franc higher as investors looked for a safe place to put their money.

At late morning trade in New York, the Swiss franc traded at SFr1.0805 to the US dollar and at SFr1.6196 to the euro.

The Canadian dollar saw gains against its US counterpart as crude oil and natural gas prices were a bit higher on concerns about the new Eastern European conflict as the fighting in Georgia caused a disruption in some oil shipments in the region.

The loonie traded at C$1.0676 to the greenback, advancing even though new home starts in Canada were down more than had been anticipated in July.

The South African rand gained on the US dollar to R7.7285 after declining 7.2 percent against the greenback last week after gold and platinum prices were up.