Tokyo The euro held steady Thursday on the back of an improving eurozone economy, while a disappointing US retail sales report put pressure on the dollar. Despite upbeat European growth, however, debt-saddled Greece confirmed that its economy had slipped back into recession,
Tokyo
The euro held steady Thursday on the back of an improving eurozone economy, while a disappointing US retail sales report put pressure on the dollar.
Despite upbeat European growth, however, debt-saddled Greece confirmed that its economy had slipped back into recession, with no end in sight to tense bailout reform talks with its international creditors.
In Tokyo, the euro bought $1.1350 and 135.34 yen against $1.1354 and 135.29 yen in New York but well up from $1.1246 and 134.80 yen earlier Wednesday in Asia.
The single currency got a boost from news that growth in the eurozone strengthened to 0.4 percent in the first quarter, from 0.3 percent in the last three months of 2014. Some of that momentum came after the European Central Bank launched a massive bond-buying programme in March to fight tepid growth and deflationary risks in the currency bloc.
The dollar edged up to 119.22 yen from 119.16 yen in New York, but it is still down from 119.83 yen in Tokyo earlier Wednesday.
A closely watched US retail sales, a key part of consumer spending that drives most of the US economy, stagnated in April after rising 1.1 percent in March. The average consensus estimate was for a 0.2 percent increase. Year-on-year, retail sales rose 0.9 percent, the weakest growth since 2009.
The data will muddy the waters for the Federal Reserve as it considers when to raise interest rates.
"There’s no way to put lipstick on a pig really, it was disappointing,” Richard Franulovich, a currency strategist at Westpac Banking Corp., told Bloomberg News.
"Whatever bounceback we see I think is going to underwhelm, ergo I think more dollar weakness is the order of the day."
