* Euro recovers a touch from a near 1-year low
* Kiwi bounces back from six-month low
* Dollar index hits 13-month high after strong data
By Jemima Kelly
LONDON, Aug 27 The euro edged off its lowest
point in almost a year on Wednesday as Germany's finance
minister played down speculation over more European Central Bank
monetary policy easing in the coming months.
The shared currency was trading at $1.3183, up 0.1 percent
on the day, after falling as low as $1.3151 in Asian
Germany's Finance Minister Wolfgang Schaeuble was quoted in
a newspaper on Wednesday as saying ECB chief Mario Draghi had
been "over-interpreted" after he said he would use "all the
available instruments" should inflation weaken
Some had seen Draghi's comments, made at the U.S. Federal
Reserve's annual conference at Jackson Hole over the weekend, as
a sign that the ECB was considering the introduction of
quantitative easing in the euro zone.
"Our contention is that Draghi and the ECB are turning more
dovish, but nowhere near as dovish as the market has interpreted
it post-Jackson Hole," said Adam Myers, head of foreign exchange
strategy at Credit Agricole in London.
"And because of that, today we think the euro will bounce
- it's gone too far."
The euro was resilient despite data showing German consumer
morale fell for the first time in more than 1-1/2 years heading
into September as shoppers grew more wary of the impact of
sanctions on Russia and other international
It also brushed off Italy's economy minister quoted in the
Corriere della Sera paper as saying the country must cut its
growth forecast. That could bring the government into line with
most economists, who expect little or no growth for the euro
zone's third-largest economy this year.
All eyes are now on euro zone inflation numbers on Friday
and the ECB's next policy meeting on Sept. 4.
Despite its bounce against the dollar, the euro struggled
against a slew of currencies, including the British pound.
Earlier on Wednesday, the euro touched its lowest level in
nearly 10 months versus the Australian dollar at A$1.4109
. Against the Canadian dollar, the euro set a
nine-month low of C$1.4362.
The New Zealand dollar was the biggest mover among developed
currencies, rising just over 0.5 percent to $0.8377,
edging away from a six-month low of $0.8311 hit on Tuesday.
The kiwi found support after giant cooperative Fonterra
reaffirmed its forecast for its farm gate milk price for the
2014/15 season and announced a partnership with a Chinese food
manufacturer to sell milk in China. Dairy is New Zealand's
largest export earner.
The dollar index, which measures the greenback
against a basket of major currencies, edged back slightly after
having hit a 13-month peak of 82.727 in Asian trade.
Data on Tuesday showed orders for U.S.-manufactured durable
goods posted their biggest gain on record in July, while
consumer confidence rose in August to its highest level since
But some traders said that U.S. data would need to be even
stronger before the Fed's rate-setting Federal Open Market
Committee would consider tightening policy.
"The U.S. figures will have to be more convincing to provide
further strong impetus for the hawks on the FOMC and thus the
dollar," said analysts from Commerzbank in a morning note.
"However, given the increased probability of further
expansionary measures from the ECB and thus an ever widening
divergence between monetary policies, euro/dollar is likely to
continue to be pulled in a southerly direction."
(Additional reporting by Ian Chua in Sydney and Masayuki Kitano
in Singapore; Editing by Hugh Lawson)