Euro stabilising after referendum falls

Euro stabilising after referendum falls

The euro seemed to be stabilizing on Thursday as it managed to rise 0.5 percent in relation to the dollar to $1.2263 after it had fallen to an eight-month low of $1.2168 overnight after the Dutch rejection of the European Union constitution on Wednesday.

The shared currency also rose in relation to sterling and the yen. It was up 0.3 percent to £0.6756 against sterling and gained 0.2 percent to ¥132.86 against the yen.

Meanwhile, the US dollar hit a new seven-month high against sterling overnight at $1.8085 before falling to $1.8153 on Thursday. The dollar also lost 0.2 percent in relation to the yen to ¥108.33.

Some analysts believe that the dollar will soon resume its slide in relation to the euro as one analyst likened the chances of the eurozone breaking up to the possibility of Texas leaving the United States. Another analyst said that the weakness of the dollar would trump negatives in the eurozone.

Meanwhile, the Australian dollar was up 0.4 percent to $0.7532 in relation to the US dollar on data showing that the Australian trade deficit was cut in half in April.

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