Dollar slips against the euro on economic reports

AP News
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Posted: May 12, 2011 4:28 PM
Dollar slips against the euro on economic reports

The dollar fell against the euro Thursday, reversing gains it made earlier in the day, after the government released consumer spending and jobs data that painted a mixed picture of the economy.

The euro rose to $1.4231 late Thursday from $1.4196 Wednesday. The euro had fallen to as low as $1.4121 earlier in the trading day after a German finance minister said that his government could back more aid to Greece. Greece received a hefty bailout last year.

In the U.S., the Labor Department said applications for unemployment benefits fell last week to 434,000, after surging the previous week. Economists expected a bigger drop in claims.

Meanwhile, the Commerce Department said higher gas prices boosted retail sales 0.5 percent in April. It's the 10th straight month of gains. Excluding gas station sales, the increase was only 0.2 percent. And the Labor Department said Thursday that the Producer Price Index rose 0.8 percent last month, mostly because of an increase in energy prices. It's the seventh month in a row that companies had to pay more for raw materials.

In other trading Thursday, the British pound fell to $1.6286 from $1.6343 Wednesday. The dollar fell to 80.91 Japanese yen from 80.97 Japanese yen, and fell to 0.8851 Swiss franc from 0.8880 Swiss franc. The dollar rose to 96.32 Canadian cents from 96.15 Canadian cents.

The U.S. dollar was mixed against other currencies around the world, rising against the currencies in South Korea, Australia and Brazil, but falling against Hong Kong, Norway and Mexico.