Euro jumps above 1.0700 in Asian trading

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Euro jumps above 1.0700 in Asian trading

SYDNEY, NSW, Australia -- The euro has jumped above 1.0700 in Asian trading Tuesday, but stocks have fallen sharply.

The run higher in the euro was sparked by comments made by ECB President Christine Lagarde, who said rates are likely to return to positive territory at the end of the third quarter. Economic data from Germany showing business activity in the private sector in May was a big factor in the rise in the European Unit.

The U.S. dollar was sold against a raft of currencies as a result of the clamor for the euro. The euro was close to the Sydney close at 1.0731. The British pound was strengthened to 1.2588. The Swiss franc increased to 0.9623.

The Australian dollar was up to 0.7092. The Nikkei 225 fell 253.38 points or 0.94 percent to 26,748 in Tokyo. The Australian All Ordinaries fell 25.70 points or 0.35 percent to 7,373. In New Zealand, the S&P NZX 50 fell by 69.43 points or 0.61 percent to 11,247. South Korea's Kospi Index fell 41.51 points or 1.57 percent to 2,605. The Hang Seng was down 400 points in late trading in Hong Kong.

Overnight on Wall Street, the Dow Jones industrials rose 618.34 points or 1.98 percent to 31,880. The tech-laden Nasdaq Composite climbed 180.66 points or 1.59 percent to 11,535. The Standard and Poor's 500 added 72.39 points or 1.86 percent to 11,535.