The Japanese yen fell to a six-month low on Monday and the Australian and New Zealand dollars rallied after an unexpected rebound in Chinese manufacturing activity raised hopes of a brighter outlook for the world economy.
The euro was steady ahead of a testimony to the European parliament later in the day by the European Central Bank’s new president, Christine Lagarde. A tightening British election race knocked the pound lower.
The latest data out of China, the world’s second biggest economy, set the tone for currency markets. Chinese factory activity expanded at the quickest pace in almost three years in November, a private business survey showed on Monday, following upbeat official data over the weekend.
The safe-haven yen fell to 109.73 per dollar, its lowest since May and was last down a fifth of a percent at 109.63.
Riskier currencies also rallied after the Chinese data, with the Australian dollar up a third of a percent at $0.6779.
The euro was steady at $1.1017 before Lagarde's testimony to the European parliament later in the day.
Source : Reuters