Dollar gains on more gloom in Europe
NEW YORK—The dollar picked up ground on the euro Monday as eurozone leaders appeared again divided on going ahead with a new Greek debt deal and support for Spain, and German business confidence fell.
Economists warned that Germany is heading for recession after the Ifo institute’s closely watched survey of the business climate in Germany dropped in September for the fifth month running.
“The companies surveyed are again less satisfied with their current business situation. They also expressed greater pessimism about the future,” said Ifo president Hans-Werner Sinn.
That helped push the euro to $1.2928, down from $1.2985 late Friday.
Both currencies dropped against the Japanese yen: The dollar fell to 77.83 yen from 78.12 yen, while the euro slipped to 100.63 yen from 101.42 yen.
“The euro came under pressure on Monday amid the heightening threat for another debt-restructuring in Greece,” said David Song, currency analyst at DailyFX.
“The single currency looks poised to face additional headwinds over the near term as the fundamental outlook for Europe turns increasingly bleak.”
European Union President Herman Van Rompuy called on Monday for a fresh sense of urgency in tackling the eurozone debt crisis ahead of a summit of EU leaders next month.
Van Rompuy warned of “a tendency of losing the sense of urgency” by European officials. “This must not happen,” he said.
The upcoming October 18-19 summit must “deal with the hard questions on the euro.”
The dollar picked up strength against the Swiss franc, rising to 0.9357 francs from 0.9324 francs.
The British pound eased to $1.6217 from $1.6229.