Euro stumbles as boost from German data fizzles

(Reuters) - The euro managed only short-lived gains against the dollar on Monday after a surprisingly positive German business sentiment survey, with investors worried about the problems of euro zone peripheral economies opting to sell into the currency's bounce.

The dollar moved broadly higher, rising against the Japanese yen and the Swiss franc, as last week's drop in U.S. bond yields took a breather. U.S. bond yields have risen steadily for most of March as the world's largest economy showed signs of improvement, lending solid support to the dollar.

In Europe, the German Ifo think tank's business climate index rose to 109.8, beating expectations of a steady reading of 109.6 and surprising many traders who were bracing for a soft number after last week's weak reading of flash purchasing managers' indices (PMIs) across the euro zone.

The euro rose to above $1.3260 from around $1.3235 before the influential German survey was released, but quickly gave up those gains to trade at $1.3200, down 0.55 percent on the day. Read More