Euro rises back above $1.39 on strong data

The European single currency rose back above 1.39 dollars Monday on news that eurozone manufacturing activity struck a two-year high last month, analysts said. In morning London trade, the single currency jumped to 1.3909 dollars from 1.

3862 dollars in New York late Friday. Against the yen on Monday, the dollar rose to 90.35 yen from 90.19 yen late Friday.

Manufacturing activity across the eurozone expanded in January at its fastest pace for two years, growing for the fourth successive month, a key survey showed on Monday. The 16-nation euro currency bloc's purchasing managers' index (PMI) for the manufacturing sector, published by data and research group Markit, rose to a revised 52.4 points in January -- the highest level since January 2008. That compared with 51.

6 points in December and beat market expectations of 52.0, according to analysts polled by Dow Jones Newswires. A number above 50 points signals expansion. "The eurozone manufacturing PMI for January was encouragingly revised up to show overall activity expanding for a fourth successive month and at the fastest rate for two years," said IHS Global Insight economist Howard Archer.

"This was particularly welcome news given that adverse weather conditions clearly hit manufacturing activity in a number of countries. " Meanwhile, traders are awaiting interest rate decisions from the Bank of England and the European Central Bank (ECB) later this week. In recent weeks, the euro has been plagued by jitters about soaring public debt in eurozone members Greece and Portugal and last week struck a six-month low under 1.39 dollars.

Before the weekend, the dollar was also boosted by official data showing the US economy grew a much faster-than-expected 5.7 percent in the last three months of 2009, the best reading since 2003. In London on Monday, the euro was changing hands at 1.3909 dollars against 1.

3862 dollars late on Friday, at 125.67 yen (125.02), 0.8751 pounds (0.

8671) and 1.4718 Swiss francs (1.4703). The dollar stood at 90.

35 yen (90.19) and 1.0581 Swiss francs (1.0603).

The pound was at 1.5889 dollars (1.5973). On the London Bullion Market, the price of gold rose to 1,083.

21 dollars an ounce from 1,078.50 dollars an ounce late on Friday. -- Dow Jones Newswires contributed to this report --