BLBG:Euro Falls Toward Four-Month Low as German Manufacturing Shrinks
The euro fell toward a four-month low against the dollar after a report showed Germany’s manufacturing industry contracted this month, underlining concern that the region’s biggest economy is stalling.
Europe’s shared currency dropped against all of its 16 major peers after separate data showed German services expanded less than analysts forecast and French manufacturing and services contracted. The yen strengthened before Haruhiko Kuroda’s first press briefing as Japan’s central bank governor.
The euro fell 0.3 percent to $1.2896 at 9:04 a.m. London time. It dropped to $1.2844 on March 19, the lowest since Nov. 22. Europe’s shared currency slid 0.6 percent to 123.47 yen. Japan’s currency appreciated 0.2 percent to 95.76 per dollar after reaching 96.71 on March 12, the weakest since August 2009.
“The weak economic data is hitting the euro, sentiment is very fragile,” said Antje Praefcke, a senior currency strategist in Frankfurt at Commerzbank AG. “Germany is one of the locomotives of euro-zone growth, so people are likely to become a little bit more cautious. The euro is likely to remain under pressure.”
An index based on a survey of purchasing managers in the German manufacturing industry unexpectedly fell to 48.9 in March from 50.3 a month earlier, London-based Markit Economics said in a report today. A similar gauge based on the services industry dropped to 51.6 from 54.7, the data showed. A reading below 50 indicates contraction.
The index of French manufacturing was at 43.9, less than the 44.2 predicted by economists, and the gauge for services was at 41.9, compared with a forecast of 44.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
