Modern Business

United States dollar weakened against the euro on Wednesday and rose against the yen, due to strong manufacturing data in the United States and China sparked investor risk appetite. The euro rose to 1.2807 dollars in New York at 2100 GMT from 1.2681 dollars late Tuesday. Dollar rose against the Japanese currency, taken 84.42 yen compared with 84.22 yen the previous day, after approaching the lowest level in 15 years at 83.60 yen.

“Common sense of numbers today, with few exceptions, is that the world economy does not work too badly,” said Brown Brothers Harriman analyst, Marc Chandler, citing recent data showing improvement in the U.S. manufacturing sector.

Institute of Supply Management on Wednesday said that the index of manufacturing rose to 56.3 points from 55.5 percent in July. Readings above 50 percent indicates the manufacturing sector to grow. Strong U.S. figures followed data from China which showed manufacturing in the second-largest economy in the world also rose last month, reducing the fear economy was heading for a sharp decline in the second half of 2010. Positive economic data is needed to support risk-seeking investors. Against other major currencies, the dollar rose to 1.0156 Swiss francs from 1.0144 on Tuesday while the British pound rose to 1.5450 dollars from 1.5346.

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