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FOREX-Dlr retreats, hurt by weaker stocks, higher oil

Fri Jul 25, 2008 4:01am EDT
 
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* Euro up 0.2 percent at $1.5710 <EUR=>

* Weaker equities, higher oil hurts risk appetite

* U.S. data weighs on dollar, more to come

(Changes dateline, byline, updates prices, adds quotes)

By Toni Vorobyova

LONDON, July 25 (Reuters) - The dollar retreated from a two-week high versus a basket of major currencies on Friday, knocked by weaker-than-expected U.S. housing and jobs data the previous session, lower equity markets and higher oil prices.

U.S. jobless claims have jumped and the pace of existing home sales has tumbled to a 10-year low, data showed on Thursday, reminding investors of the problems plaguing the world's largest economy.

A $2.50 recovery in the oil price CLc1 from Thursday's seven-week low as well as a financials-led sell off in global equity markets also weighed on sentiment, dragging down the dollar and boosting the low-yielding yen and the safe-haven Swiss franc.  Continued...

 

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