Euro weakens on data

The euro was weaker in relation to the US dollar and the yen Monday after German business confidence dropped in June and on data showing that the Eurozone’s manufacturing and service sectors contracted during the month.

The new numbers will likely make it more difficult for the European Central Bank to raise interest rates soon despite statements from the Bank’s president earlier in the month that rates would probably go up, perhaps as early as next month.

Late morning trade in New York found the US dollar trading at $1.5494 in relation to the shared currency while it took ¥167.1493 to buy a euro.

Meanwhile, the pound weakened versus the US dollar and the euro on Monday after online property search company Rightmove (LSE: RMV) reported that the average price for a home in the UK was down in May, decreasing the possibility that UK interest rates will go up anytime soon.

At just before noon in New York it cost $1.9611 to buy a pound while the UK currency traded at 79p to the euro.

The South African rand was weaker after the withdrawal of the opposition candidate for the presidency in Zimbabwe from a runoff election against Zimbabwe’s current president on the possibility that political instability surrounding the election will spread across the region.

The rand traded at R8.0615 versus the US dollar while it was at R12.487 to the euro.

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