Dollar rises from 6-month low vs euro as US data improves, slips against pound and yen

Dollar bounces back from 6-month low vs euro

NEW YORK — The dollar bounced back Monday from a six-month low against the euro as two reports on housing and manufacturing showed modest improvements in the U.S. economy.

In late afternoon trading in New York, the euro fell to $1.3686 from $1.3780 late Friday.

On Friday, the euro hit a high of $1.3793, its strongest level since mid-March. Last month, the euro shot up 7 percent on expectations that the Federal Reserve will commit to more support for the U.S. economy, possibly by buying up large amounts of government securities.

Such a move would likely drive down interest rates. Lower rates make the dollar less appealing to investors.

The dollar was nearly unchanged versus the British pound and Japanese yen. The pound traded at $1.5833 from $1.5835, while the dollar was worth 83.38 yen, compared to 83.37 yen late Friday.

Traders were mostly cautious ahead of several days packed with economic data and central bank decisions. The government will release a key report on U.S. jobs Friday that could heavily influence whether the Fed will step in with more relief for the economy.

Central banks in the 16-nation bloc of European nations, Great Britain and Japan will also meet to set interest rates and policy.

In other trading Monday, the dollar rose to 1.0227 Canadian dollars from 1.0191 Canadian dollars, but slipped to 0.9727 Swiss francs from 0.9753 Swiss francs. Earlier in the day, the dollar tumbled to its most recent 2 1/2 year low at 0.9705 Swiss francs.

Slower growth in the U.S. has muted the dollar’s appeal as a safe-haven currency, giving a boost to the Swiss franc and yen instead.

The big jump in the yen drove the Bank of Japan to intervene in foreign exchange markets last month to weaken the yen.