Euro hit by weak eurozone manufacturing data

SINGAPORE: The euro slumped against the dollar for a third consecutive day in Asian trade Thursday as lacklustre European manufacturing data fuelled mounting concerns over the eurozone, analysts said.

The euro was at $1.3141 in early trade, down from $1.3158 late Wednesday in New York. The single currency also lost ground against the Japanese yen, falling to 105.35 yen from 105.56 yen.

The dollar edged up to 80.17 yen from 80.14 yen.

Trading was subdued with Japanese financial markets closed for the rest of the week for a holiday.

Weak eurozone manufacturing data was tempering investor sentiment on the euro, Phillip Futures said in a report.

"The euro dropped for a third straight day versus the US dollar after sluggish European manufacturing data added to fears about a broadening slowdown in the region," it stated.

A key index of eurozone manufacturing activity released late Wednesday plummeted to the lowest level in almost three years, sending investor confidence in the region's currency in the same direction.

Rises in seasonally adjusted unemployment in eurozone economic lynchpin Germany as well as debt-mired Italy exacerbated the outflow of investors from the euro into the safe-haven greenback, analysts said. (AFP)