Drop in German business confidence hurts euro

The euro and the pound were both weaker Thursday after the Ifo Institute reported that German business confidence declined in July and on a report from the Office of National Statistics in London said that UK retail sales declined by 3.9 percent in June.

It cost $1.5673 to buy a euro in late morning trade in New York and a euro was worth ¥168.6258 while the pound traded at 79.03p to the euro and it took $1.9859 to buy a pound.

The New Zealand dollar was lower after the Reserve Bank of New Zealand cut interest rates to 8 percent, the first rate reduction there in five years , while the Australian dollar weakened on declines in commodities prices.

The New Zealand dollar was worth 74.14 cents US after going as low as 74.04 cents US while it took ¥79.896 to buy the kiwi while at the same time, the Aussie traded at 95.88 cents US and ¥103.28 before noon in New York.

Meanwhile, the Brazilian real strengthened after the central bank there raised interest rates to 13 percent Wednesday, a gain of three quarters of a percentage point.

The real traded at R$1.5760 to the dollar in New York at late morning.

Story link: Drop in German business confidence hurts euro