Euro Declines on Concern ECB Lagging Fed in Countering Slump


Staff member
Nov 30, 2008
The euro fell against the dollar and the yen on speculation the European Central Bank is lagging behind international counterparts in efforts to deal with the biggest financial crisis in six decades.

The yen weakened beyond 100 per dollar for the first time since Nov. 4 and fell against the Australian and New Zealand currencies for the sixth week after the Group of 20 nations pledged $1 trillion to spur economic growth, increasing demand for higher-yielding assets.

“The economies in the region, especially those in Eastern Europe, are likely to keep deteriorating,” said Akifumi Uchida, deputy general manager of the marketing unit at Sumitomo Trust & Banking Co., in Tokyo. “The ECB still has scope to cut rates further. The bias is for the euro to weaken.”

Europe’s single currency weakened to $1.3422 as of 7:05 a.m. in London, from $1.3461 late yesterday in New York. The euro slid to 133.63 yen from 133.98 yen.

The yen was little changed at 99.56 per dollar after earlier reaching 100.18 per dollar, the weakest since Nov. 4. Japan’s currency slid to 71.11 per Australian dollar, a 4.4 percent drop from late in New York on March 27.

From Bloomberg News.