Euro falls as economic worries return

The European single currency fell back after hitting a 2-month high above $1.43 as the market reacted to a fall in U.S. consumer confidence dragged down by a weak job market. In late afternoon London trade, the euro rose to $1.4304 but later fell back to $1.4157 compared to $1.4238 late Mon. The euro also fell against the Japanese currency, going down to 133.33 yen from 135.50 yen previously. The dollar too fell to 94.23 yen from 95.16 yen. Analysts said markets appeared to be adopting a cautious approach against excessive optimism about the possibility of a global economic recovery. The decline in U.S. consumer confidence shown in a closely-watched survey & some disappointing co. results gave further justification for such caution. The Conference Board, business research firm, said confidence index fell to 46.6 from 49.3 in June, after an 8-month peak of 54.8 in May. The figure was weaker than analysts' expectations of 49.0. The report underscored fears while the U.S. economy is showing signs of recovery from recession, rising unemployment could dampen any recovery by hurting consumer spending, a key driver of economic activity. Scott Hoyt at Economy.com, the research arm of int