/www.fxserver.com/ THE euro edged higher against the dollar yesterday helped by firmer than expected economic data from the eurozone, and weaker than expected US industrial production.
A modest rebound in US stocks after a lower opening helped lift the dollar off the day’s lows, but traders said there was little enthusiasm to pile into greenbacks when there was so much uncertainty clouding the economic future.
Jason Bonanca, at Credit Suisse First Boston in New York, said the winding down of hostilities in Iraq had not led to the type of global risk reassessment that might have encouraged more flows into US assets and a stronger dollar.
"We could come into that world if there was a shift in animal spirits, such that US CEOs started to invest and hire again. But there has been a remarkably quick transition from geopolitical uncertainty to worry about the same old things, like excess capacity, over-investment and accounting scandals," he said.
The dollar was down about two-tenths of a per cent against the euro at $1.0794 per euro and up two-tenths of a per cent against the Swiss franc at 1.3918 francs. It was flat against the yen at 120.26 yen. Bob Lynch, at BNP Paribas in New York, said the market also was keeping an eye on the Middle East as the US turned the heat up on Syria.
The Canadian dollar was little changed after the Bank of Canada raised interest rates by 25 basis points, as had been widely expected.
Sterling slipped against the euro to 68.76p and trimmed early losses against the dollar to stand at $1.5716.