Aryanews- The euro once again fell against the dollar on Tuesday as investors voiced doubt about Europe's economic outlook following sharp drops in German business confidence and French household spending.
The poor data overshadowed earlier optimism that Greece, which has found itself in the whirlwind of the financial markets in recent weeks, could be on its way to getting financial assistance from the European Union.
The euro was changing hands at 1.3549 dollars late on Tuesday in London, compared to 1.3593 dollars late in New York on Monday. The euro was also down against the Japanese unit, falling to 122.18 yen from 123.92 yen earlier.
The dollar was down to 90.17 yen from 91.13 yen late on Monday.
The drops came after the closely-watched Ifo business confidence index dropped for the first time in almost a year, surprising analysts and suggesting that a recovery in Europe's top economy will be slow and bumpy.
"The economic recovery is expected to continue when winter is over," said Hans-Werner Sinn, the Ifo institute's president, noting that a sour climate in retailing was responsible for the drop.
The gloom was compounded by data showing that household spending in France dived by 2.7 percent last month and by earnings results from Germany's second-biggest lender Commerzbank showing steep losses.
"The result reflects the effects of the ongoing economic and financial market crisis -- and the crisis is not yet over, although the start of 2010 has been promising," Commerzbank chairman Martin Blessing said in a statement.
