On Tuesday the euro rise against the dollar, reversing earlier losses as a firmer-than-expected German sentiment survey offset concerns about the country’s banking sector.

Rise in the German Ifo

A bigger-than-expected rise in the German Ifo November business climate index has helped the euro. The index rose to 93.9, a level that has not seen since the collapse of Lehman Brothers last year. This has lifted optimism that Germany’s recovery can gain momentum.

Euro

After falling as low as $1.4889 by 1239 GMT, the euro EUR= was up 0.1% at $1.4975. On Monday it hit a one-week high of $1.5001 but has recently struggled to hold above $1.50.

Traders cited options with a strike price of $1.5000 and $1.5050 which were set to expire later in the day.

Euro against Yen

The euro was down 0.3% at 132.68 yen against the yen EURJPY=R.

Dollar index

The dollar index was steady at 75.064 .DXY. This is the index by which the performance of the greenback against a basket of six other major currencies is tracked.

Standard and Poor’s raised concerns about some major banks

After a report on Monday by U.S. ratings firm Standard and Poor’s raised concerns about the health of some major banks, the dollar and yen gained against riskier currencies.

Yen become firm

The yen secured firmness, having the dollar down 0.4% to 88.58 yen JPY=, after earlier touching a six-week low of 88.56 yen on trading platform EBS.

Australian dollar and New Zealand dollar

The Australian dollar was down 0.4% at $0.9203 AUD=D4, it is lower than a 15-month high of $0.9407 last week, whereas the New Zealand dollar NZD=D4 fell 0.7% to $0.7281.

People who liked this Post also read

• Dollar gains; higher-yielding currencies lose shine
  On Friday the dollar rise, giving an extension to the previous day's gains as investors retreated from riskier assets, taking the shine off higher-yielding currencies such as the Australian dollar.Today Tokyo's Nikkei average fell 0.5% and after the U.S. ...
• Dollar jump on Dubai Debt Worries, but Markets remained calm
  On Friday the yen hit a 14-year high against the dollar and it rallied broadly, while the dollar climbed against most other currencies as carry trades and risk exposure were cut down by the investors on concern about Dubai's debt problems. However, by mid...
• Canadian Dollar dropped down as Stocks fall on Concern Rally Overdone
  The Canadian dollar has drooped down against 13 of its 16 most-traded counterparts and it has gained only against the currencies of New Zealand, Australia and South Africa. The U.S. dollar has shown a rise against all but two major currencies as......
• Euro gained Vs Dollar, boosted after Dubai Secures Funding
  On Monday after Dubai's announcement that it had received help from Abu Dhabi to repay its debts improved risk appetite and reduced some of the U.S. currency's safe-haven appeal and as a result of this, the euro has shown a rise versus......
• EUR/USD hits 2 1/2-Month low, hit by ZEW survey
  On Tuesday the euro hit a 2-1/2-month low versus dollar, effected by concerns about the health of euro zone banks, while traders have also been prompted by a slip in German economic sentiment to dump the single currency......