Euro rises on stronger US, European data

AP News
Posted: Dec 20, 2011 3:24 PM
Euro rises on stronger US, European data

Stronger U.S. housing data, rising business confidence in Germany and falling borrowing rates at a Spanish bond auction are pushing the euro higher against the dollar Tuesday.

Builders broke ground on 685,000 new homes in November, a 9.3 percent jump from October and the highest level since April 2010. Building permits, a gauge of future construction, rose 5.7 percent, mostly due to an increase in apartment permits.

In Europe, Germany's Ifo Institute's monthly index of business confidence unexpectedly rose Tuesday despite the region's ongoing debt crisis. And Spain's borrowing costs fell during a debt auction, a sign that investors are more confident that the country can pay its debts.

The euro rose to $1.3076 in late trading Tuesday from $1.3017 late Monday.

Traders tend to sell currencies that are considered safer bets, such as the dollar, and buy riskier ones, like the euro, when they are less nervous about the state of the global economy.

The dollar was mostly weaker against most other currencies.

The British pound rose to $1.5660 from $1.5520. The dollar fell to 71.05 Japanese yen from 77.95 yen, to 0.9313 Swiss franc from 0.9364 Swiss franc and to 1.0311 Canadian dollar from 1.0365 Canadian dollar.

The dollar also fell against the Australian and New Zealand dollar, the Norwegian krone, the South Korean won, the Hong Kong dollar and the Brazilian real.