Drop in consumer prices hurts euro

The euro was weaker versus the US dollar and the yen Friday on new data showing that consumer prices fell 0.7 percent from last year in Europe and that while US consumer prices were unchanged in July from June but dropped 2.1 percent from last year in July.

In late morning trade in New York, the dollar traded at $1.4243 to the euro while the yen was at ¥134.6888 to the shared currency.

Earlier in the session, the yen saw slight gains versus the US dollar, but by late morning it had dropped its gains and was trading at ¥94.565 to the dollar.

The South African rand decline versus the US dollar after South Africa’s central bank unexpectedly cut interest rates by 0.5 percent to 7 percent, the lowest the rate has been in over three years, on concerns that the economy there contracted for a third consecutive quarter in the quarter ending in June.

The rand traded at R8.0855 to the greenback at around 11:15 a.m. in New York.

The Canadian dollar also was down versus the US dollar after earlier gains on a 1.9 percent gain in factory sales in June, against an expected decline.

The loonie was a C$1.0913 to the greenback after US equities markets declined.

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