Euro edges higher toward $US1.36
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NEW YORK, Jan 31 AFP
February 01 2013, 10:23AM
The euro has edged higher on the US dollar and the yen has slumped further, a day after a surprise GDP report showed the US economy stopped growing in the fourth quarter.
The euro pushed to $US1.3576 from $US1.3564 late on Wednesday, its highest level since November 2011.
The euro has gained more than 15 cents on the US dollar since its low in July near $US1.20, powering up as a tentative confidence has returned to the eurozone.
Kit Juckes of Societe Generale said that, for the moment, weak US growth and improvements in European markets favour the euro.
"The main drivers of euro-dollar direction - relative interest rates and peripheral bond spreads - have both moved sharply in the euro's favour in January, and can drive the euro-dollar higher still, to $US1.40 or so."
However, he added, "That doesn't alter a view that the euro will weaken to $US1.20 by the end of 2013 as EU/US economic divergence increases."
The yen continued to sag on the government's push to reignite growth and inflation.
The US dollar rose to 91.70 yen from 91.05 yen, while the euro went to 124.52 yen from 123.54.
The British pound rebounded for the third day, rising to $US1.5856 from $US1.5798, while the US dollar fell to 0.9099 Swiss francs from 0.9107 francs.