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Saturday, December 22, 2007
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Dec 19 2007 2:42PM
Euro falls to session lows vs dlr after weak Ifo

LONDON, Dec 19 (Reuters) - The euro fell to session lows versus the dollar on Wednesday and German stocks extended losses after the Ifo German business climate index came in below expectations.

The Ifo German business climate index came in at 103.0 versus consensus forecast of 103.8 in December.

By 0904 GMT the euro had fallen as low as $1.4374, down around 10 ticks from before the data.

Frankfurt's DAX index <.GDAXI> briefly extended losses and was down 0.3 percent lower to 7,829.5 after the data.

"The headline number is certinaly softer than expected, so any gut instinct will be to focus on that... But even though this is a decline, it's still way above its historical average -- so there's reason to be cautious but there's no reason to panic just yet," said Stuart Bennett, senior euro zone economist at Calyon. ((Reporting by Toni Vorobyova and Simon Falush))

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