The euro slid the most in a week against the dollar and yen on concern Greece’s political leaders will fail to reach an agreement allowing the nation to receive a second bailout from international creditors.
The 17-nation currency fell as Fitch Ratings said a Greek disorderly default “cannot be wholly discounted.” The dollar rallied against all its major counterparts amid increasing expectations the U.S. central bank will avoid further easing of monetary policy. Australia’s currency retreated for the first time in five days after the nation’s retail sales declined.
“The dollar has outperformed the likes of Aussie and kiwi, and the euro is lower, so the market is cognoscente a problem exists in Greece,” said Shahab Jalinoos, a senior currency strategist for UBS in Stamford Connecticut. “But it’s not a whitewash of pro-risk currencies, so the market is still quite sanguine about the situation, for now
The euro fell as much as 1 percent to $1.3028, the steepest intraday decline since Jan. 30, and traded 0.6 percent weaker at $1.3076 at 11:04 a.m. New York time. It dropped 0.6 percent to 100.18 yen. The dollar was little changed at 76.60 yen.
The yen rose against most of its major peers even after Bank of Japan Governor Masaaki Shirakawa said the nation’s economic condition is ‘‘severe” because of deflation and the strong currency. The central bank is implementing monetary easing measures and will take appropriate steps as needed, he said in parliament in Tokyo today.
The 17-nation currency fell as Fitch Ratings said a Greek disorderly default “cannot be wholly discounted.” The dollar rallied against all its major counterparts amid increasing expectations the U.S. central bank will avoid further easing of monetary policy. Australia’s currency retreated for the first time in five days after the nation’s retail sales declined.
“The dollar has outperformed the likes of Aussie and kiwi, and the euro is lower, so the market is cognoscente a problem exists in Greece,” said Shahab Jalinoos, a senior currency strategist for UBS in Stamford Connecticut. “But it’s not a whitewash of pro-risk currencies, so the market is still quite sanguine about the situation, for now
The euro fell as much as 1 percent to $1.3028, the steepest intraday decline since Jan. 30, and traded 0.6 percent weaker at $1.3076 at 11:04 a.m. New York time. It dropped 0.6 percent to 100.18 yen. The dollar was little changed at 76.60 yen.
The yen rose against most of its major peers even after Bank of Japan Governor Masaaki Shirakawa said the nation’s economic condition is ‘‘severe” because of deflation and the strong currency. The central bank is implementing monetary easing measures and will take appropriate steps as needed, he said in parliament in Tokyo today.
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