Euro falls against US dollar as US Treasuries deemed safe

The euro weakened by 0.94 cents on Friday against the US dollar to finish the day at $1.4014.

• In early trading on Friday, the euro dipped against the dollar after a drop in eurozone industrial output reminded investors the region’s economy still had some way to go before it comes out of recession. It dropped 21.6% in April from a year ago, a record fall and well below the 20.2% dip expected.
  
• Concern earlier in the week that international reserve managers were set to diversify away from the US dollar also eased on Friday, aiding the greenback’s recovery. Comments from Kaoru Yosano, Japan’s finance minister, that his trust in US Treasuries was “absolutely unshakeable” rekindled demand for the US currency.
  
• In trading so far today, the euro has fallen sharply against the dollar as traders continue to book profits following gains in recent days.
  
• There are no major announcements out in the eurozone today, whilst in the US TIC Long-Term Purchases data is due at 14.00 BST.