Thursday, 09 August 2012 01:42
NEW YORK: The euro edged lower against the dollar on Wednesday, pressured by soft German economic data, but losses were limited by hopes the European Central Bank may soon take action to lower Spanish and Italian borrowing costs.
Adding to pressure on the euro were comments from Eurogroup President Jean-Claude Juncker that a Greek exit from the euro zone would be manageable but is not desirable.
Industrial output in Germany, the euro zone's biggest economy, fell more than expected in June. Separate data showed German imports fell in June for the second time in three months, and exports also dropped.
"The reports reminded investors that regardless of what the ECB does to bring down government borrowing costs, the real economies of Europe, even Germany's, continue to decline," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
The euro fell 0.4 percent to $1.2355, after hitting a one-month high of $1.2443 on ...