Euro up against dollar as US house index falls

The euro is up against the dollar, after more bad economic news has emerged out of the United States.

The 16-nation currency rose to $1.3285 in morning European trading from $1.3178 on Tuesday in New York.

In the US, the Standard & Poor's/Case-Shiller 20-city housing index tumbled by a record 18.2 per cent from November 2007, while the Conference Board consumer confidence index edged lower.

The greenback dropped against the euro before the Federal Reserve ends a two-day meeting late yesterday, at which policy makers may announce plans to buy more assets to boost credit markets.

Meanwhile in Europe, the GfK consumer survey for Germany is showing that the consumer climate in Germany is remaining stable, while the Ifo business sentiment survey found improved business confidence.

In other currencies, the British pound is buying at $1.4272 yesterday from $1.4152.

Meanwhile, Japan's currency dropped to 118.39 versus the euro in Tokyo, from 117.08 late Tuesday in New York.

The yen fell against the Australian dollar and the South Korean won as the Federal Deposit Insurance is likely to manage a "bad bank" the Obama administration will set up to help end the credit crisis, two people familiar with the matter said.

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