Euro near eight-month highs against dollar ahead of US data

LONDON (AFP) - The euro was being traded just shy of eight-month highs set against the dollar last week, with major currencies staing within tight ranges ahead of US capital flow data.
The single European currency was being traded at 1.2480 dollars against 1.2468 late on Friday in New York.
The dollar dipped to 109.28 yen from 109.36 on Friday.
The euro broke above 1.25 dollars on Friday for the first time since February, rising to 1.2507 dollar, while the US unit fell below 109 yen for the first time since mid-July, reaching 108.82 yen.
The dollar had initially rallied slightly after Friday's robust US retail sales figures, but this was soon more than cancelled out by a much weaker than expected New York manufacturing survey, as well as evidence that US consumer confidence had taken a hit in October.
The yen managed to hold up against the dollar despite oil prices again reaching record highs, with US crude futures rising above 55 dollars.
Bank of Japan Governor Toshihiko Fukui said although oil prices remained a concern, Japan's economic recovery should regain momentum.
Additionally, BNP analysts pointed to the BoJ meeting minutes from 8-9 September, which highlighted the role of technology spending in the economic recovery, emphasising this dependency over and above the impact of oil prices.
"Thus, although the policy board noted that the economy's slowdown started sooner than expected, the yen should be able to benefit from any rebound in capital expenditure and thus in technology stocks," they said.
Dealers were awaiting US capital flow data later Monday, amid concerns about whether the US economy will be able to fund its large trade deficit, which boomed to 54 billion dollars in August, the second biggest in history.
HBOS currency analyst Steve Pearson noted that a net capital inflow in excess of 60 billion dollars, alongside positive net equity flows, would be required in order to make a "sensible dollar positive case", given August's trade deficit of 54 billion dollars and net foreign direct investment of around five billion dollars per month.
"This looks a tough double hurdle for the dollar to clear," he said.
The euro was changing hands at 1.2480 dollars from 1.2468 late on Friday in New York, 136.35 yen (136.37), 0.6919 pounds (0.6911) and 1.5402 Swiss francs (1.5384).
The dollar stood at 109.28 yen (109.36) and 1.2346 Swiss francs (1.2337).
The pound was at 1.8028 dollars (1.8034), 197.03 yen (197.27) and 2.2258 Swiss francs (2.2255).
On the London Bullion Market, the price of an ounce of gold stood at 418.40 dollars against 420.40 on Friday afternoon.