May 23, 2008	Friday	Jamadi-ul-Awwal 17, 1429

LONDON, May 22: The dollar moved higher against the euro on Thursday on news that eurozone industrial orders fell in March and as the US Federal Reserve signalled a pause in its rate-cutting cycle.

The single European currency in late trade was at $1.5709, down from $1.5789 late Wednesday in New York.

The dollar was at 103.93 yen after 103.02 on Wednesday.

The euro weakened following the release of data in Brussels showing that new industrial orders in the eurozone fell 1.0 per cent in March from February and were down 2.5 per cent over the same month in 2007.

The result was worse than economist forecasts for orders to ease 0.2 per cent over one month and increase 7.8 per cent from February 2007.

The data reminded investors that the strong euro and record commodity prices were causing trouble for eurozone manufacturing, which has so far been more resilient than the financial sector, where confidence has been hit by a global credit crisis.

The dollar got a boost from Federal Reserve signals on Wednesday that the US economy would have to muddle through without further interest rate cuts.

Continued easing in Fed monetary policy would weigh heavily on the dollar, making it less attractive to investors.

In minutes released from its April 29-30 policy meeting, the Fed said its decision to cut rates by a quarter point was “a close call” and that the “substantial easing” since last September plus other measures would help underpin economic activity.

The panel also stated that “it was no longer appropriate for the statement to emphasise the downside risks to growth.”

The minutes said that “several members noted that it was unlikely to be appropriate to ease policy ... unless economic and financial developments indicated a significant weakening of the economic outlook.”—AFP