Euro rebounds as U.S. stocks drop, growth concerns remain

NEW YORK — The euro bounced against the

greenback on Friday as U.S. stocks declined from record highs,

though concerns about growth in the eurozone are expected to

keep weighing on the single currency.

Anxiety about the impact of the coronavirus on the European

economy this week helped send the euro to its lowest levels

against the dollar in 2-1/2 years.

A report on Friday that Fiat Chrysler plans to close a plant

in Serbia due to a lack of parts added to fears that ties to

China leave Europe’s economy vulnerable.

“We had some first indications that this might be starting

to impinge on the global supply chain this morning with Chrysler

shutting one of their factories in Eastern Europe because of

shortage of supplies from China,” said Shaun Osborne, chief FX

strategist at Scotiabank in Toronto.

The virus has infected 1,700 Chinese health workers and

killed six, authorities said on Friday.

Data also hinted at a soft European economy. Euro zone gross

domestic product grew 0.1% quarter-on-quarter in the fourth

quarter, in line with forecasts, while year-on-year growth was

weaker than expected at 0.9%.

The German economy stagnated in the fourth quarter due to

weaker private consumption and state spending, renewing fears of

a recession just as Chancellor Angela Merkel’s conservatives are

preoccupied with a search for a new leader.

The euro fell to $1.0826, the lowest since May 2017,

before rebounding to $1.0856. It has fallen from $1.1095 on Feb.

3.

The euro came off its lows as U.S. stocks declined from

record highs reached on Thursday.

U.S. data showed clothing store sales in January declining

the most since 2009, which could raise concerns about the

staying power of the moderate economic expansion.

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Currency bid prices at 9:59AM (1459 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.0856 $1.0840 +0.15% -3.16% +1.0861 +1.0828

Dollar/Yen JPY= 109.7100 109.8100 -0.09% +0.78% +109.9000 +109.7100

Euro/Yen EURJPY= 119.12 119.04 +0.07% -2.32% +119.2200 +118.8900

Dollar/Swiss CHF= 0.9803 0.9792 +0.11% +1.29% +0.9818 +0.9790

Sterling/Dollar GBP= 1.3021 1.3045 -0.18% -1.80% +1.3063 +1.3003

Dollar/Canadian CAD= 1.3248 1.3267 -0.14% +2.02% +1.3269 +1.3235

Australian/Doll AUD= 0.6716 0.6718 -0.03% -4.34% +0.6731 +0.6710

ar

Euro/Swiss EURCHF= 1.0647 1.0615 +0.30% -1.89% +1.0650 +1.0610

Euro/Sterling EURGBP= 0.8335 0.8307 +0.34% -1.41% +0.8344 +0.8300

NZ NZD= 0.6436 0.6435 +0.02% -4.45% +0.6444 +0.6424

Dollar/Dollar

Dollar/Norway NOK= 9.2333 9.2495 -0.18% +5.18% +9.2703 +9.2257

Euro/Norway EURNOK= 10.0257 10.0298 -0.04% +1.91% +10.0547 +10.0190

Dollar/Sweden SEK= 9.6928 9.6705 +0.36% +3.70% +9.7072 +9.6717

Euro/Sweden EURSEK= 10.5249 10.4867 +0.36% +0.53% +10.5285 +10.4850

(Editing by David Gregorio)