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Dollar ekes out gain against resurgent euro

The dollar managed to claw back some of the euro’s recent gains Friday, but concerns about the fate of the US economy limited the reversal.

The euro fell to 1.3054 dollars in New York at 2145 GMT from 1.3076 dollars late Thursday.

“The theme in the markets continues to be dollar weakness with the greenback selling off against almost all of the major currencies,” said Kathy Lien of Global Forex Trading.

“The euro may have ended the NY session lower, but it rebounded well off earlier lows.”

On Thursday the euro had scaled to 1.3107 dollars, its strongest level since May 4, on reports of strengthening eurozone confidence and an improvement in Germany’s employment picture.

“The euro has jumped since early June, bucking the declining trend seen since the start of the year,” said Nick Bennenbroek, head of currency strategy at Wells Fargo.

But Bennenbroek cautioned against expectations of the prolonged rise.

“While the timing of a renewed decline in the euro is uncertain, we still see a medium-term downtrend in the single currency,” he said.

The dollar dropped against the Japanese currency, to 86.47 yen from 86.80.

Against other key currencies, the dollar rose to 1.0412 Swiss francs from 1.0407, while the British pound rose to 1.5689 dollars from 1.5607.

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