Euro hits new four-month peak on poor US data
LONDON (AFP) - The European single currency hit another four-month high on Monday, as poor United States (US) manufacturing data stoked expectations of more quantitative easing (QE) from the Federal Reserve, traders said.
In afternoon deals, the euro rebounded to $1.3172 - hitting a pinnacle last seen on May 4. That compared with $1.3127 late in New York on Friday.
The dollar sank following a second straight monthly decline in the Fed's Empire State manufacturing index for the New York region in September.
"Terrible US data can be perceived as good news by the financial markets if it extends the prospect of more QE from the Federal Reserve," said research director Kathleen Brooks at trading website Forex.com.