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1/4/15

Euro Slides to Weakest Since 2006 on ECB, Greece as Yen Advances - by Garfield Reynolds and Kevin Buckland

The euro fell to the weakest in almost nine years against the dollar amid speculation the European Central Bank is moving closer to starting government bond purchases known as quantitative easing.

The shared currency slid versus all except two of its 16 major peers as Greece began an election campaign that may result in victory by an anti-austerity opposition party. The yen strengthened to an eight-week high against the euro as a slide in Asian stocks boosted demand for havens. New Zealand’s dollar and South Africa’s rand weakened as commodities dropped. South Korea’s won fell for a third day as BNP Paribas said the central bank may cut interest rates this year.

“The reasons to be selling the euro were pretty clear over the weekend: Draghi being a step closer to QE and deepening concerns about the Greek political situation,” said Sean Callow, a currency strategist at Westpac Banking Corp. in Sydney. “The euro was so close to such a keenly watched round number as $1.20 that we didn’t need any fresh news to tip us over the cliff.”

Read more: Euro Slides to Weakest Since 2006 on ECB, Greece as Yen Advances - Bloomberg

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