

OTTAWA (dpa-AFX) - The euro declined against its major rivals in European deals on Tuesday, as German economic sentiment index became negative for the first time since late 2012 in October and Eurozone industrial production fell more-than-expected in August, intensifying worries about the bloc.



Data from Eurostat showed that Eurozone industrial production fell 1.8 percent month-on-month in August after recovering last month.



Economists had forecast a 1.6 percent fall for August following a revised 0.9 percent increase in July. Initially, Eurostat reported a 1 percent monthly growth in July.



The survey results from the Centre for European Economic Research/ZEW showed that Germany's investor confidence deteriorated for the tenth successive month in October.



The ZEW Indicator of Economic Sentiment dropped to -3.6 from 6.9 in September. It was far worse than the zero reading forecast by economists.



The latest score was the first negative since November 2012, when the print was -15.7.



This dismal numbers, which follows last week's weak data on factory orders, industrial production and exports, raised fears that region's powerhouse may contract in the third quarter.



The euro slipped to 135.21 against the yen, a level not seen since November 2013. This may be compared to an early 4-day high of 136.55. The next possible support for the euro-yen pair lies around the 134.00 zone.



An index measuring producer prices in Japan was down 0.1 percent on month in September, the Bank of Japan said, coming in at 106.3.



That was in line with forecasts following the 0.2 percent decline in August.



The single currency slipped to a 12-day low of 1.2071 against the franc, off early high of 1.2091. The euro may challenge support near the 1.20 mark.



Switzerland's producer and import prices continued to decline in September, data from the Federal Statistical Office showed.



Producer and import prices declined 1.4 percent on a yearly basis in September, faster than the 1.2 percent fall in the prior month.



The euro, having advanced to 1.2731 against the greenback in early deals, eased to 1.2652 after these data. If the euro continues its decline, it may target support around the 1.255 level.



The euro retreated slightly from an early near 4-week high of 0.7956 against the pound, with pair trading near yesterday's close of 0.7925.



U.K. inflation slowed to a five-year low in September, data from the Office for National Statistics showed.



Consumer price inflation eased more-than-expected to 1.2 percent in September from 1.5 percent in August. Economists had forecast the rate to slow marginally to 1.4 percent.



The euro reversed from an early high of 1.4288 against the Canadian dollar, edging down to 1.4228. Further weakness may take the euro-loonie pair to a support around the 1.41 region.



Copyright RTT News/dpa-AFX

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