• Home
• /
• Business

Euro breaches 1.36 dollars

In early deals, the euro surged as high as 1.3604 dollars -- a high point last seen on August 14. That compared with 1.3566 dollars in New York late on Thursday.

The dollar increased to 116.05 yen, from 116.28 yen on Thursday.

Dealers awaited publication of durable goods orders and new home sales data in the United States for fresh direction later Friday.

Recent stock market turmoil saw the euro fall as low as 1.3360 dollars last week as the dollar drew strength from its status as a safe haven in times of global financial uncertainty.

However, this week’s modest recovery to equities has pushed the dollar lower, dealers said.

“Stability has returned momentarily to the market with investors taking a breather while regaining some of their appetite for risk,” said Kazuhiko Shibata, Tokyo branch manager at Dresdner Bank.

The euro has also found support from the increased prospects of an interest rate hike in the eurozone.

The fragile recovery on global stock markets faltered on Friday, however, as Asian and European shares struggled because of re-emerging credit concerns, dealers said.

Global markets have taken a beating this month on fears that damage from default US “subprime” mortgages -- loans to customers with patchy credit histories -- will disrupt lending by banks.

“It is too early to talk of a full recovery and to think the credit/mortgage crisis has been digested,” said Commerzbank analyst Gavin Friend.