The euro surged to a one-week high against the dollar Thursday, as a pickup in business activity boosted investor confidence in the euro zone’s economic recovery.
The data also helped European stocks reverse early losses, which came following a slowdown in China’s manufacturing sector.
The euro climbed 0.6% against the dollar to trade at $1.3643, its highest since Jan. 16. The single currency also gained against the yen and sterling.
Date firm Markit said its preliminary composite Purchasing Managers Index for January—a measure of activity in the manufacturing and services sectors—rose to 53.2 from 52.1 in December, signaling the most rapid expansion since June 2011. Expectations had been for a more modest rise to 52.5.
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