Bloomberg News

Euro Rises as Spanish Manufacturing Shrinks Less Than Forecast

March 01, 2013

The euro strengthened, paring a weekly decline against the dollar, after a gauge of Spanish manufacturing in February shrank less than economists forecast.

The single currency appreciated versus 13 of its 16 major counterparts after Market Economics said the final reading of is Spanish Purchasing Managers Index increased to 46.8 from 46.1 in January. Analysts surveyed by Bloomberg forecast an increase to 46.3. The Dollar Index (DXY) dropped amid speculation automatic spending cuts in the U.S. will stifle a recovery in the world’s biggest economy.

The euro rose 0.2 percent to $1.3084 at 8:43 a.m. London time, trimming its weekly loss to 0.9 percent. The shared currency strengthened 0.2 percent to 121.14 yen. The dollar was little changed at 92.66 yen.

The euro weakened against 14 of its 16 major counterparts in February, losing 3.8 percent against the greenback and 3 percent versus the yen. The dollar strengthened 0.9 percent against Japan’s currency, a fifth monthly gain.

To contact the reporter on this story: Neal Armstrong in London at narmstrong8@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net


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