Economic data indicating a climbing jobless rate in the euro zone during February pulled down the common currency of the European Union on Tuesday as the euro slumped to its five-week low against the Japanese yen, Bloomberg reports.
So too did the 17-nation currency fall against most of its top 16 rival monetary units in advance of policy makers with the European Central Bank convening this Thursday. A purchasing managers' index returned underwhelming data regarding the region.
"Euro zone manufacturing … looks likely to have acted as a drag on the economy in the first quarter, with an acceleration in the rate of decline in March raising the risk that the downturn may also intensify in the second quarter," chief economist Chris Williamson with index compiler Markit told Reuters on Tuesday.
The unemployment rate in February in the beleaguered bloc that is attempting to emerge from recession advanced to 12 percent, data from the statistics office of the European Union indicates.
Also pressuring the performance of the euro on Tuesday were persistent concerns about how effective will be the bailout aid for Cyprus, Reuters reports.
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