Early trade in New York: Euro retreats versus dollar

12 Aug, 2014

The euro slid against the dollar on Monday, giving up Friday's gains, hampered by looming monetary easing from the European Central Bank and worries about the impact of the Russia-Ukraine conflict on Germany, the euro zone's largest economy. Europe's common currency had climbed above $1.34 on Friday as investors covered overextended short positions but the rally proved short-lived given the euro zone's fundamental backdrop, although the euro seemed to have found support at $1.3350.
"The euro remains in a sell-the-rally mode as growth in the region is threatened by the ongoing conflict with Russia which is likely to have a particularly negative impact on German growth," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. In mid-morning New York trading, the euro was down 0.2 percent on the day against the dollar at $1.3385. Against the yen, the euro was 0.1 percent lower at 136.67 yen. The dollar, meanwhile, was up 0.1 percent against a basket of currencies at 81.462. It was up as well versus the yen at 102.09 yen. The crown surged around 1 percent against the euro after the data amid high volumes, hitting 8.2835 crowns per euro.

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