Dollar Erases Losses vs. Euro

The US dollar erased its losses against the euro today after a report showed that France’s GDP increased in the last quarter less than was previously estimated. The greenback rose versus the pound, but dropped against the yen.

France’s gross domestic product rose 0.3 percent in the third quarter from the second quarter, according to the National Institute of Statistics and Economic Studies, compared to the previously estimated growth by 0.4 percent. GDP declined 0.1 percent in the previous three months. Annual growth was 1.5 percent in Q3, down from 1.7 percent in Q2.

The economy of the United States is in much better shape, making the dollar more attractive than the euro and other risky currencies. The Standard & Poor’s 500 Index gained 0.7 percent. Yield on US 10-year notes increased eight basis points to 2.03 percent.

EUR/USD traded at 1.3038 today as of 20:39 GMT after it rose from 1.3049 to 1.3094 earlier. GBP/USD slid from 1.5676 to 1.5598, while USD/JPY dropped from 78.15 to 78.05.

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