June 22, 2018 / 2:59 PM / 5 months ago

FOREX-Euro rises on growth data, Italian assurances to stay the course

    * Dollar weakens partly on rebound in commodity, EM
currencies
    * OPEC output pact bolsters oil prices, investor sentiment
    * Aussie dollar rebounds from 13-month low

 (Updates market action, changes dateline from previous LONDON)
    By Richard Leong
    NEW YORK, June 22 (Reuters) - The euro rose on Friday as
traders were encouraged by improved regional economic growth
data and new assurances by Italian politicians that their nation
would not leave the single currency.
    The euro was on pace for a weekly gain of 0.29 percent
against the dollar, reversing the prior week's 1.35 percent drop
tied to the European Central Bank's hint it would hold interest
rates through the summer of 2019. 
    The euro's advance, together with a rebound in
commodity-linked and emerging market currencies, pressured the
dollar, putting it in the red this week.
    "The German and French data were better. There was more
assurance from the Italian government about staying in the
single currency," said Minh Trang, senior currency trader at
Silicon Valley Bank in Santa Clara, California. 
    Business activity in Germany and France, the euro zone's top
two economies, picked up in June despite trade tensions between
Europe and the United States, IHS Markit data showed.
 
    The current Italian government "does not want to exit the
euro", Claudio Borghi, a top lawmaker in the far-right League
party, said in a newspaper interview.
    The single currency was also bolstered after Greece clinched
debt relief and received a cash infusion from the euro zone.

    At 10:22 a.m. (1422 GMT), the euro climbed 0.35 percent at
$1.1642, and increased 0.45 percent to 128.17 yen
.
    An index that tracks the dollar versus a basket of
currencies including the euro was down 0.07 percent at
94.682, retreating further from an 11-month peak of 95.529 on
Thursday.
    The greenback also weakened against commodity-linked and
emerging market currencies as worries about a global trade war
were offset by a perceived modest increase in oil output by OPEC
producers.
    A bounce in crude prices, which were up 3.5 percent,
helped rekindle some investor confidence in higher-yielding
currencies, analysts said.
    OPEC agreed to a modest increase in oil production after its
leader Saudi Arabia persuaded archrival Iran to cooperate.

    The Australian dollar was up 0.7 percent at
$0.74310 after hitting a 13-month low on Thursday, while the
South African rand rose 1 percent at 13.4370 per dollar,
retreating further from a near seven-month trough earlier this
week.
    Still Europe's political situation, especially in Germany
and Italy, and the global trade picture remained uncertain,
which could put the dollar, euro and other currencies in a tight
trading range into the quarter-end, analysts and traders said.
========================================================
    Currency bid prices at 10:25AM (1425 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1642        $1.1601     +0.35%         +0.00%      +1.1675     +1.1600
 Dollar/Yen       JPY=        110.0600       109.9800    +0.07%         +0.00%      +110.2100   +109.8600
 Euro/Yen         EURJPY=     128.13         127.60      +0.42%         +0.00%      +128.5800   +127.5300
 Dollar/Swiss     CHF=        0.9905         0.9916      -0.11%         +0.00%      +0.9920     +0.9886
 Sterling/Dollar  GBP=        1.3264         1.3250      +0.11%         +0.00%      +1.3314     +1.3240
 Dollar/Canadian  CAD=        1.3329         1.3312      +0.13%         +0.00%      +1.3380     +1.3262
 Australian/Doll  AUD=        0.7428         0.7379      +0.66%         +0.00%      +0.7442     +0.7375
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1533         1.1507      +0.23%         +0.00%      +1.1550     +1.1499
 Euro/Sterling    EURGBP=     0.8774         0.8760      +0.16%         +0.00%      +0.8783     +0.8751
 NZ Dollar/Dolar  NZD=        0.6897         0.6876      +0.31%         +0.00%      +0.6914     +0.6856
 Dollar/Norway    NOK=        8.1004         8.1248      -0.30%         +0.00%      +8.1275     +8.0662
 Euro/Norway      EURNOK=     9.4300         9.4308      -0.01%         +0.00%      +9.4453     +9.4143
 Dollar/Sweden    SEK=        8.8649         8.8908      +0.00%         +0.00%      +8.8952     +8.8275
 Euro/Sweden      EURSEK=     10.3199        10.3200     +0.00%         +0.00%      +10.3290    +10.2902
    

    
 (Additonal Reporting by Saikat Chatterjee in LONDON;
Shinichi Saoshiro in TOKYO 
Editing by William Maclean and Jeffrey Benkoe)
  
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