The euro fell below $1.30 for the first time since January as Italian borrowing costs increased at a debt auction and Spanish banks' borrowings from the European Central Bank climbed by the most in a year.
The 17-nation euro declined to a 10-week low against the yen as European stocks declined, damping demand for assets denominated in the euro region's currency. Norway's krone weakened after the Norges Bank cut interest rates for the first time since 2009. The pound was the biggest gainer against the euro among the major currencies as investors sought protection from Europe's sovereign-debt crisis.
"It looks like the euro is going to remain under periodic bouts of pressure that could be quite acute," said Ray Attrill, a senior currency strategist at BNP Paribas SA in New York. "The European Union summit agreement was seen as the bare minimum."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
