- Vanzarile au scazut dramatic in USA.
- Dollar Gains on Riskier Rivals
LONDON -- Hopes of a global economic recovery pushed the dollar lower and the euro higher in Europe Tuesday.
The positive sentiment was also enough to help the price of gold over the $1,000 an ounce level for the first time since February.
The euro pushed ahead to $1.4440 by 0930 GMT, taking it well above $1.4339 late on Monday in Europe, according to EBS. The dollar fell to 92.26 yen from 92.97 yen. The pound rallied sharply to $1.6496 from $1.6399.
Although U.S. markets were closed for Labor Day Monday, other global markets appeared to be still taking their cue from G-20 assurance over the weekend that there is no hurry to bring an end to the extraordinarily easy monetary policy in most major economies.
Further evidence of an upturn came from Australia, where the latest National Australia Bank business confidence survey showed a rise to levels last seen in October 2003.
Germany also injected some positive sentiment, with its latest trade data showing that exports rose by another 2.3% during July, helped by increased demand from Asia.
"It looks as if exports have become a trump card," said Carsten Brzeski, senior euro-zone economist with ING Financial Market in Brussels.
Although this positive mood was enough to help the euro and the pound sharply higher against the dollar, there are some caveats.
Bank of Spain Governor and European Central Bank member Gonzales Paramo warned that the markets might be reacting too optimistically to better economic data.
"We think that these concerns are valid and will imply a considerable period of low rates, if not a further cut -- or cuts -- before the cycle is finished," said Steve Barrow, senior currency strategist with Standard Bank in London.
Concern was also being expressed about the continued rally in Chinese shares, amid speculation that the Chinese government is providing support for equities ahead of the 60th anniversary of the People's Republic of China Oct. 1.
"We wonder if upside in the stock market is actually a meaningful indicator to economic activity in China," said Sue Trinh, senior currency strategist with RBC Capital Markets in Sydney.