(Adds new comments, changes byline, dateline; previous LONDON)
* Euro falls after German ZEW sentiment survey
* Dollar main beneficiary of euro's weakness
* New Zealand dollar hits 2-month lows
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 12 The euro fell for a second
consecutive session against the dollar on Tuesday after a
benchmark survey highlighted growing concerns in Germany about
the impact of the Russia-Ukraine crisis.
Investors saw euro weakness across the board, with the
single currency index, which measures its movement
against five major currencies, down 0.2 percent on the day. The
euro index was on track for its worst daily performance since
Aug. 5 in the wake of the German data.
Germany's ZEW survey showed that both the current situation
index and the expectations index deteriorated sharply, dropping
for an eighth consecutive month to 8.6 in August, its lowest
since December 2012. The reading was well below forecasts.
The West has imposed tough sanctions on Moscow, one of
Germany's biggest trading partners, over Russia's purported role
in Ukraine. Russia, has responded with sanctions which analysts
say will hurt the euro zone.
"The recent string of disappointing economic indicators from
the world's fourth largest economy, along with an escalation of
sanctions towards Russia, has institutional investors and
analysts nervous about future economic conditions," said Scott
Smith, senior market analyst, at Cambridge Mercantile Group in
The euro fell to $1.3337 after the ZEW survey was
released, not far from a nine-month low of $1.3331 struck on
Aug. 6. It was also 0.3 percent lower against the yen at 136.46
yen, eyeing a recent trough of 135.73 yen.
The euro's losses saw the dollar edge up. The dollar index
rose 0.1 percent to 81.572.
The safe-haven yen stayed off highs notched up late last
week when concerns about the situation in the Middle East and
the conflict between Ukraine and Russia were more acute. The
dollar was last flat at 102.17 yen, pulling away from
Friday's two-week low of 101.51 yen.
Apart from the euro, a big mover was the New Zealand dollar
which fell to a two-month low against the greenback. It dropped
to US$0.8407, its lowest since June 4. It was last
trading at US$0.8439, down 0.3 percent on the day.
That was a long way off a near three-year high of US$0.8839
hit last month, with the currency dogged by expectations of a
slowdown in the pace of New Zealand interest rate rises and an
ongoing tumble in global dairy prices.
Fresh evidence that New Zealand's housing market was cooling
added to selling pressure, traders said.
"The New Zealand dollar is now reaching the key $0.84 level.
A break below this level would confirm a technically bearish
"double-top" formation suggesting a move below $0.80," Morgan
Stanley said in a note.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Anirban Nag in London; Editing by Tom Brown)