* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds details, updates prices; previous LONDON)
By Karen Brettell
NEW YORK, Aug 25 (Reuters) - The euro gained against the dollar on Tuesday after data showed improving
German business morale, and as investors waited on comments from Federal Reserve Chairman Jerome Powell on
Thursday about the U.S. central bank's policy framework review.
A German business climate index rose more than expected in August as both manufacturing and services
picked up steam, boosting hopes that Europe's largest economy is set for a strong recovery following the
massive coronavirus pandemic shock. It is "another data point that helps keep the euro at this stretched level," said Kit Juckes, macro
strategist at Societe Generale.
The major focus for the dollar this week will be whether the Fed's Powell signals that the U.S.
central bank will shift its inflation target to an average. This would allow inflation to rise higher than
previously before the Fed raises rates, which would be a further negative for the dollar.
"The expectation is that there might be a subtle shift in how much the Fed will be willing to tolerate
higher inflation in the future," said Minh Trang, senior FX trader at Silicon Valley Bank in Santa Clara,
California.
Rock bottom interest rates and concerns about a more dovish inflation policy have reduced the appeal
of the U.S. currency, while a relatively high level of COVID-19 infections is also casting doubts on the
speed of the U.S. economic recovery relative to other regions including Europe.
The euro EUR+ was last up 0.33% on the day at $1.1826, after reaching $1.1965 on Monday, the highest
since May 2018.
The dollar index against a basket of currencies =USD fell 0.21% to 93.08.
The dollar also weakened against riskier currencies, but gained against the safe haven Japanese yen
after the United States and China said they are still committed to their Phase One trade deal.
The Australian dollar AUD= rose 0.29% to $0.7182.
The greenback rose 0.47% against the yen JPY= to 106.47 yen.
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Currency bid prices at 9:58AM (1358 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1826 $1.1787 +0.33% +5.50% +1.1844 +1.1784
Dollar/Yen JPY= 106.4700 105.9700 +0.47% -2.20% +106.4900 +105.8800
Euro/Yen EURJPY= 125.92 124.94 +0.78% +3.26% +126.0300 +124.9500
Dollar/Swiss CHF= 0.9088 0.9117 -0.32% -6.10% +0.9126 +0.9079
Sterling/Dollar GBP= 1.3129 1.3063 +0.51% -0.98% +1.3169 +1.3056
Dollar/Canadian CAD= 1.3189 1.3216 -0.20% +1.56% +1.3239 +1.3177
Australian/Doll AUD= 0.7182 0.7161 +0.29% +2.29% +0.7191 +0.7152
ar
Euro/Swiss EURCHF= 1.0751 1.0749 +0.02% -0.93% +1.0768 +1.0746
Euro/Sterling EURGBP= 0.9007 0.9021 -0.16% +6.54% +0.9037 +0.8984
NZ NZD= 0.6532 0.6525 +0.11% -3.03% +0.6558 +0.6516
Dollar/Dollar
Dollar/Norway NOK= 8.9527 9.0021 -0.55% +1.99% +9.0123 +8.9277
Euro/Norway EURNOK= 10.5890 10.6160 -0.25% +7.63% +10.6250 +10.5580
Dollar/Sweden SEK= 8.7672 8.7877 +0.08% -6.21% +8.7958 +8.7333
Euro/Sweden EURSEK= 10.3690 10.3612 +0.08% -0.96% +10.3835 +10.3300
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dollar aug 25 https://tmsnrt.rs/3lfXwfQ
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