Dollar Faces Pressure Against Euro, Yen After Data Brighten Outlook for Europe
NEW YORK -- The dollar came under more pressure against the euro and yen after a look at two central-bank decisions -- and the data they were based on -- cast the euro in a more flattering light.</br></br>Following Wednesday's Federal Reserve rate cut, the European Central Bank decided to leave rates unchanged. Central bank head Wim Duisenberg said that despite the U.S. slowdown, which could constrain global growth, euro-zone fundamentals look "broadly favorable."</br></br>Japanese life-insurance companies and trust investment funds seemed to have come to the same conclusion overnight and were notable bidders for euros, according to Tokyo traders.</br></br>In late afternoon trading, the dollar was buying 115.58 yen, down from 116.30 yen early in London and 116.37 yen late Wednesday in New York. The euro was trading at 94.14 cents, higher compared with 94.05 cents early in London and 93.66 cents late Wednesday in New York.</br></br>The euro had a brief spike on the release of the U.S. National Association of Purchasing Management manufacturing index, which fell to 41.2 in January, its lowest reading since March 1991.