Dollar falls against euro on US manufacturing data

AP News
Posted: Nov 15, 2012 4:37 PM

NEW YORK (AP) — The dollar fell against the euro Thursday after manufacturing in Philadelphia and New York fell this month.

The possibility of more stimulus for Japan's economy pushed the yen to a nearly seven-month low against the dollar.

The euro rose to $1.2778 in afternoon trading from $1.2745 late Wednesday.

The Federal Reserve Bank of Philadelphia said that its index of regional manufacturing activity declined to minus 10.7 in November, a five-month low. That's down from a reading of 5.7 in October. The Federal Reserve Bank of New York said Empire State Manufacturing Index was minus 5.2, slightly better than October. Negative readings signal contraction.

In Japan, a candidate for prime minister said that he wants the country's central bank to cut interest rates to zero or below. That would weaken the yen.

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The dollar rose to 81.21 Japanese yen from 80.17 Japanese. The dollar jumped as high as 81.45 yen Thursday, its highest point since April 25.

The dollar fell to 0.9424 Swiss franc from 0.9443 Swiss franc and to 1.0017 Canadian dollar from 1.0030 Canadian dollar.

The British pound fell to $1.5850 from $1.5854.