NEW YORK – The euro erased some of its recent losses against the dollar on Tuesday, as solid European manufacturing data helped put concerns about debt on the back burner, at least for a time.
“The dollar got the new year off to a broadly weaker start as positive manufacturing data from China and Europe helped fan investor appetite for risky assets,” said analysts at Travelex.
The European single currency rose sharply to $1.3051 from $1.2934 late Monday.
It hit a 15-month low last week at $1.2858 on eurozone debt crisis concerns.
“It comes as little surprise then that today’s rally in the stock markets has coincided with a technical bounce on the EUR/USD,” said David Morrison of Global Forex Trading.
“But with the debt crisis still ongoing and more sovereign downgrades looming, the euro is likely to face further headwinds in the months ahead.”
The dollar hit 76.68 yen, slightly weaker than the 76.90 yen seen the day before and 0.9320 Swiss francs versus 0.8337.
The pound strengthened to $1.5646 versus $1.5514.