LONDON, Sept 1 - The euro was around half a percent lower on the dollar and the yen at the start of European trade on Tuesday as traders anticipated strong U.S. manufacturing data later in the session. The euro, which had been enjoying a brief rebound after several weeks of weakness, had fallen to $1.0908 and 127.30 yen by 0650 GMT. The U.S. Institute of Supply Management (ISM) publishes its August survey of the manufacturing sector at 1400 GMT and its main index is forecast to rise to 53.8 in August from 51.8.
A reading above 50 denotes economic expansion and below 50 contraction. A similar survey out of the euro zone on Monday showed the region's manufacturing sector was improving but still mired below the 50 mark in contraction mode. Other data include euro zone unemployment at 1000 GMT, with thejobless rate expected to hold steady at 8.9 percent in July. U.S. Treasury Secretary John Snow visits Beijing on Tuesday and Wednesday where he is due to meet China's central bank governor. China, under pressure to let the yuan rise, said on Tuesday there would be no change to its yuan policy just because of Snow's visit. The dollar was steady at 116.69 yen after the Japanese currency's recent run higher, with the market wary Japanese authorities could intervene to cap yen gains.
Japan's top financial diplomat, Zembei Mizoguchi, said the United States and Japan shared similar views on foreign exchange and the global economy and that Japan's economy was getting better but the situation did not warrant a further rise in the yen. For previous updates on currency moves click on [USD/-M]//