* Euro retreats after poor industrial output, ZEW numbers
* Dollar recovers from 1-month low versus yen
* UK inflation, retail sales data hits sterling
(Updates prices, adds comments; changes byline, dateline,
By Sam Forgione
NEW YORK, Oct 14 The U.S. dollar recovered
against a basket of major currencies on Tuesday after worrying
economic data out of the euro zone and United Kingdom
underscored the relative health of the U.S. economy.
The dollar reversed Monday's losses against the euro after
euro zone industrial output and the ZEW indicator of German
investor sentiment came in well below forecasts, renewing fears
of another technical recession in the euro zone.
"There is just massive concern about where the European
economy is going," said Steven Englander, global head of G10
foreign exchange strategy at CitiFX in New York.
"If you're revising down growth expectations globally, the
U.S. is far from the most vulnerable economy," he said on the
reasoning behind the dollar's recovery.
The concerns over global growth, particularly in Europe,
overshadowed worries that the U.S. Federal Reserve would delay
its first interest rate hike. The euro hit an 11-month low
against the yen.
Concerns over a delay in the Fed's timeline for hiking rates
hurt the dollar on Monday. An interest rate hike is expected to
boost the dollar by driving investment flows into the
The dollar bounced back from a one-month low against the
Japanese yen, while the British sterling fell against the
greenback on data showing a drop in September inflation and an
unexpected fall in the BRC indicator of retail sales in the
While the dollar was up against the yen, the global growth
concerns limited the safe-haven yen's losses.
"The overarching theme is not really a U.S.-centric story
this morning, it's more of a European story," said Mark
McCormick, currency strategist, at Credit Agricole in New York.
The dollar and yen are considered safe-haven currencies.
The euro was last down 0.73 percent against the
dollar at $1.2658, and down 0.57 percent against the yen
at 135.41 yen. The euro hit an 11-month low of 135.05
The dollar was last up 0.17 percent against the yen
at 107.02 yen after hitting a one-month low of 106.68 yen
earlier in the session. The dollar also recovered against the
Swiss franc and was last up 0.61 percent at 0.9539 franc.
Sterling was last down 1 percent against the dollar
at $1.5921, not far from an 11-month low of $1.5906 hit earlier
in the session. The dollar index, which measures the
greenback against a basket of six major currencies, was last up
0.22 percent at 85.724.
U.S. Treasuries yields fell on the global growth anxiety,
while U.S. stocks rebounded as investors focused on corporate
earnings. The S&P 500 was last up 0.57 percent.
(Reporting by Sam Forgione; Editing by Meredith Mazzilli)