Dollar driven down by strong German confidence reading

0 Comments | AFP, May, 2008

LONDON (AFP) — The dollar was driven lower against the euro Wednesday following news of an unexpected rebound in German business confidence and as investors awaited minutes from the last US Federal Reserve meeting.

The single European currency in late-day trade was at 1.5772 dollars, up from 1.5645 late Tuesday in New York.

The dollar was meanwhile at 103.32 yen, down from 104.47 on Tuesday.

The euro firmed sharply on the Ifo Institute's German business climate index, which rose to 103.5 in May from 102.4 in April, confounding predictions of a decline to 101.9 and cementing market expectations the European Central Bank will not be cutting eurozone interest rates in the near future.

"Strength in the IFO and the relentless increase in oil prices is...