By: Barbara Zigah
The common currency Euro rose versus the U.S. Dollar in early morning trading in New York, striking the highest level in more than 2 months. As reported at 9:10 a.m. (EST), the euro traded at $1.3077, off from late Wednesday's trade of $1.2988 on the EBS trading platform and, at one point in that session, peaking at $1.3092.
The Euro's appreciation is being attributed to the contrast of the improved economic data coming out of the Euro-zone while the pace of the U.S. economy is faltering comparatively.
The worry over the Euro-zone's sovereign-debt problems appear to be receding, consequently the Euro is benefiting from investor belief that the worst of the troubles are now behind them.
Forex and the US Economy
In contrast, one strategist in Chicago noted that investors are questioning the recovery and health of the U.S. economy, even in spite of the better-than-expected jobless claims report that was recently released. Indeed, the Euro is out-performing the U.S. Dollar, and it is clear that the greenback's reliance on the sovereign debt risk of other nations is misplaced.
The U.S. Dollar Index, which measures the greenback's strength versus a weighted basket of major currencies, slipped to its lowest point since early May when it struck 81.648 .DXY, off from 82.132 .DXY.