The European Commission says, further strengthening of the euro is extremely undesirable
Bad news about the situation in the American economy is finally accompanied with good news too. The US dollar started rising on the Asian market after the publication of the report about the improving field of services in the USA in June. The dollar increased up to 1.1471 dollars per euro yesterday morning in Tokyo, against the result of the New York tender the day before - 1.1502 dollars per euro. The dollar rate increased against the Japanese yen too - 118.32 yens per dollar vs. the previous result of 118.18.
The growth of the business activity index in the field of services of the USA (ISM Non-Manufacturing) in June surpassed careful expectations of financial analysts. The index increased to 60.6 points from 54.5 points the month before, whereas experts forecast the rise only to 55 points, KM.Ru reports. Chief investment analyst for CFC Securities, Michael Preiss, said that the situation on the American market of services was ameliorating, which led to the massive purchase of the dollar. The analyst also said that the European economy was still weak, it was growing slower than the American economy.
Analysts believe that the growth of the dollar rate against the euro by 2.3 percent during the latest month is explained with the information about the improvement of the economic development in the United States. The European economy is balancing on the edge of recession. The strengthening of the dollar has also been influenced with marketers' hopes for an improvement in the American economy. In addition to it, investors paid attention to American companies' stocks.
The American dollar is currently staying at the same position in Russia. The Russian Central Bank preserved the same official dollar rate - 30.28 rubles per dollar and set the official euro rate on the level of 34.9038 rubles per one euro. As specialists predicted, the dollar increased a little (by two kopecks) on the Russian market on Thursday, without the Central Bank's participation. Traders say the Central Bank used July 4th celebrations in the States and automatically kept the official dollar rate on the level of the previous day. The excessive level of the ruble liquidity has been preserved on the market, which helped to raise the demand on the dollar. The European currency in Russia was influenced with the worldwide reduction. The euro dropped by 14 kopecks yesterday - the ruble is strengthening against the euro on the Russian market.
Commerce banks dealers say, the sliding of the European currency is explained with the situation on the world market. The dollar has been strengthening against the euro lately. The European Commission has recently announced that the further strengthening of the euro would be extremely undesirable, because the strong euro was a big obstacle for the development of the European economy.