Euro Falls After Moody’s Says Summit Offered Few New Measures
The dollar and yen strengthened against most of their major counterparts as investors sought safer assets on concern crisis- fighting efforts are failing to stop European borrowing costs from rising. Sweden’s krona weakened as stock declines reduced demand for higher-yielding investments. China’s yuan appreciated after the central bank signaled the currency will be allowed to trade more freely.
“Moody’s captures the mood,” said Kit Juckes, head of foreign-exchange research at Societe Generale SA in London. “The market is disappointed that nothing more substantial was agreed” at last week’s European Union summit. “There are no convincing reasons for anyone to want to own the euro today.”
The euro fell 0.9 percent to $1.3264 at 7:14 a.m. in New York after dropping as much as 1 percent, the most since Nov. 25. The currency slid 0.7 percent to 103.18 yen, and declined 0.7 percent to 84.86 U.K. pence after reaching 84.85 pence, the lowest level since March 3. The dollar advanced 0.2 percent to 77.79 yen.
The single currency may depreciate toward $1.3145, which would be the weakest since January, Juckes said.
Dr. Pinna says:
Where are the Europeans going to get the money to pay off two trillion Euros of debt? Easy question. They will print it. Just like the Americans. Then watch gold.