07:55 Germany PMI (September) seasonally adjusted 50.3
08:00 EU(17) PMI (September) 48.5
08:30 UK CIPS manufacturing index (September) 51.1
The euro fell to an eight-month low against the dollar as European finance ministers prepared to weigh the threat of a default in Greece, which is making fresh budget cuts to secure an international bailout.
The yen rose against the dollar on demand for a refuge as sentiment at Japan’s biggest manufacturers remained below levels seen before a record earthquake struck in March.
European Union Economic and Monetary Affairs Commissioner Olli Rehn told reporters an option for including the European Central Bank in leveraging of the euro area’s temporary bailout fund will be on the table when finance ministers meet today in Luxembourg.
The yen climbed against the dollar after the Bank of Japan said today its quarterly Tankan index of sentiment increased to 2 in September from minus 9 in June, encouraged investors to take refuge in Japan’s currency. The reading was below 6 in March and in line with the median projection of economists.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, gained as much as 0.8 percent to 79.154, the highest level since Jan. 20. The greenback tends to appreciate during periods of economic and financial turmoil as investors take refuge in the world’s main reserve currency.
EUR/USD: the pair restored in $1.3370 area.