LONDON, Aug 22: The euro was on Friday settling itself in below the symbolic 1.1-dollar mark as further signs of recovery in the US economy hit the single European currency.

Meanwhile the yen also looked to be consolidating at higher levels, despite the threat of intervention by Tokyo to push the Japanese unit lower.

The euro was at $1.0928 from 1.0919 late Thursday in New York, having dipped below $1.1 earlier that day for the first time since late April.

The dollar traded at 117.86 yen from 117.74 on Thursday.

A raft of positive US economic data on Thursday had helped keep the dollar resurgent, analysts said.

Further dollar appreciation against the euro in the foreign exchange market was triggered by the release of the ‘Philly Fed’ manufacturing report yesterday, said Bank of Tokyo-Mitsubishi analyst Derek Halpenny.

The data added support to the view that the US economy will accelerate significantly in the second half of the year.

A survey by the Philadelphia Federal Reserve Bank, released Thursday, showed manufacturing activity in the United

States mid-Atlantic region had surged in August and that the outlook was the brightest in a decade.

Other key figures included a fourth consecutive monthly rise in the Conference Board’s closely-watched index of leading economic indicators and a sizeable drop in new claims for US jobless benefits.

The euro’s break lower through the 1.0955 dollar support now opens the way for further losses towards the 1.0645 area, said Mitul Kotecha, chief currency strategist at BNP Paribas.

The yen, also buoyed by economic optimism, could rise more despite Japanese government concern at its strength, analysts added.

Further yen upside is likely, even though the risk of intervention is clearly rising, said ABN Amro’s Aziz McMahon.

The euro was changing hands at $1.0928 from 1.0919 late on Thursday in New York, 128.78 yen (128.56), 0.6933 pounds (0.6914) and 1.5425 Swiss francs (1.5437).

The dollar was being quoted at 117.86 yen (117.74) and 1.4109 Swiss francs (1.4126).

The pound was at $1.5759 (1.5785), 185.81 yen (185.85) and 2.2252 Swiss francs (2.2299).

On the London Bullion Market, the price of an ounce of gold stood at $361.15 from 363.30 on Thursday afternoon. —AFP