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Euro hits 9-month peak vs dollar on recovery hopes

Published 08/05/2009, 02:56 PM
Updated 08/05/2009, 02:57 PM
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NEW YORK, Aug 5 (Reuters) - The euro extended gains against the dollar on Wednesday to a nine-month high above $1.44 after Goldman Sachs raised its U.S. real growth forecast for the second half of 2009 from 1 percent to 3 percent.

The euro hit a session high at $1.4446 , according to Reuters data, the highest level since December. It was up about 0.3 percent from late Tuesday.

Earlier, the euro fell against the dollar, which drew safe-haven demand following U.S. data showing private employers cut more jobs than expected last month while the services sector also shrank.

But analysts said investors were still optimistic about a global recovery and were focusing on the slower pace of U.S. job losses in July compared with June.

"The default setting is still that risk is on unless we get really clear, definitive data to the contrary, and that doesn't seem likely at this stage," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey. (Editing by Dan Grebler)

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