01 Jul

Euro rises on positive news

Higher European share markets and improved manufacturing activity data in the region spurred the exchange rate of the euro on Wednesday. There was a minor limit to the gains as private employment figures in the US came in worse than expected.

European data showed positive signs for the eurozone, with deterioration slowing in the eurozone's manufacturing sector. It is the fourth straight month that new orders have shrunk at a slower pace, indicating that contraction will be much less in the second quarter.

Gains in stocks and commodity prices, optimistic views about the global economy and nothing negative in the European purchasing manager's index, have hurt the demand for the US dollar and euro caused the euro exchange rate to strengthen.