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| Version 2 | Version 3 |
|---|---|
| Dollar increases against the euro | Dollar increases against the euro |
| (about 5 hours later) | |
| The dollar has climbed back to a six-month high against the euro, as continuing fears about the European economy hit the single currency. | The dollar has climbed back to a six-month high against the euro, as continuing fears about the European economy hit the single currency. |
| With a key German business sentiment survey posting its worst reading in three years, the euro fell as low as $1.4571 in Tuesday trading. | With a key German business sentiment survey posting its worst reading in three years, the euro fell as low as $1.4571 in Tuesday trading. |
| Data showing that the German economy contracted from April to June, also increased European recession fears. | Data showing that the German economy contracted from April to June, also increased European recession fears. |
| Meanwhile, the pound fell to $1.8331, its lowest point since July 2006. | Meanwhile, the pound fell to $1.8331, its lowest point since July 2006. |
| Deteriorating outlook | Deteriorating outlook |
| "The German [business confidence] number suggests that the risk of a full-blown recession in Germany is rising as the last time the number plunged to this level, Germany was in recession," said analyst Dustin Reid of ABN Amro in Chicago. | |
| The US currency has benefited as the economic outlook has darkened in both mainland Europe and the UK. | The US currency has benefited as the economic outlook has darkened in both mainland Europe and the UK. |
| Investment guru Warren Buffett said last week that he had no bets against the dollar - underscoring the currency's strength. The fall in the euro and sterling could help European exporters whose goods will now be cheaper overseas. | Investment guru Warren Buffett said last week that he had no bets against the dollar - underscoring the currency's strength. The fall in the euro and sterling could help European exporters whose goods will now be cheaper overseas. |
| But it will hurt holidaymakers who have benefited from a strong pound when travelling to countries which use the dollar. | But it will hurt holidaymakers who have benefited from a strong pound when travelling to countries which use the dollar. |
| While the dollar resumed its rises on Tuesday, oil prices were mixed. | |
| US light, sweet crude rose by 30 cents to $115.41 a barrel while London Brent crude slipped 7 cents to $113.96. |