(Adds new comment, updates prices)
* Euro falls after weak German ZEW sentiment survey
* Dollar main beneficiary of euro's weakness
* New Zealand dollar hits two-month lows
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 12 The euro fell against the
dollar for a second consecutive session on Tuesday after a weak
German investor sentiment survey highlighted growing concerns
about slowing growth in the region and worries about the impact
of the Russia-Ukraine crisis.
Investors saw broad euro weakness with the euro index
, which measures the euro zone common currency's value
against five other units, down 0.2 percent on the day following
the weak German data.
Germany's ZEW survey showed both the current situation and
expectations indexes deteriorating in August, while the overall
index fell for an eighth consecutive month, to 8.6, its lowest
since December 2012 and well below forecasts.
The West has imposed tough sanctions on Moscow, one of
Germany's biggest trading partners, over Russia's role in
Ukraine. Russia has responded with sanctions of its own, which
could hurt the euro zone.
"The recent ... 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 last at $1.3367, down 0.1 percent. The euro was
also 0.1 percent lower against the yen at 136.61 yen.
The euro's losses saw the dollar edge up. The dollar index
rose 0.1 percent to 81.508, generally benefiting from the
U.S. economy's improving prospects. Still, U.S. yields remained
low, tempering the dollar's rise.
The latest signals from the Federal Reserve still suggest
little urgency from the U.S. central bank to raise interest
"The most recent economic data and news have been somewhat
mixed, which to us suggests the recent U.S. dollar rally is
something of a false start," wrote Nick Bennenbroek, head of
currency strategy at Wells Fargo, in a research note.
"Instead, we expect the greenback's performance to remain
relatively subdued through the remainder of 2014."
The safe-haven yen stayed off highs hit 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 102.21 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$0.8430, 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 rate rises and an ongoing
tumble in global prices for dairy products, a major export.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Anirban Nag in London; Editing by Tom Brown and James Dalgleish)