Euro falls against dollar on eurozone debt woes

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GMT + 8 Hours Euro falls against dollar on eurozone debt woes

Post by ~lonely princess~ on Mon Sep 26, 2011 6:41 pm

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TOKYO: The euro fell against the dollar in Asia on Monday as risk-averse investors shunned the European single unit amid continued fears over the continent's debt problems.

The euro sagged to $1.3431 in Tokyo morning trade from $1.3503 in New York late Friday. The unit also retreated to 102.72 yen from 103.31 yen, but remained above the fresh 10-year trough of 102.22 it hit last week.

The dollar was rangebound at 76.47 yen compared to 76.50 yen.

A meeting late last week of finance chiefs from the Group of 20 leading economies could not quell financial market concerns that Greece's debt problem may trigger another global financial crisis.

The meeting issued an emergency statement saying: "We... are committed to a strong and coordinated international response to address the renewed challenges facing the global economy."

"We are taking strong actions to maintain financial stability, restore confidence and support growth," it said.

Teppei Ino, an analyst at the Bank of Tokyo-Mitsubishi UFJ, said: "The statement temporarily supported the euro's downside as the G20 finance chiefs pledged their commitment to addressing the problem.

"But they came short of mapping out any measures with immediate effects so have failed to stop the market's selling of risky assets," Ino said.

"Uncertainty will likely persist," a senior dealer at a major Japanese
trust bank told Dow Jones Newswires.

Tokyo's Nikkei average extended recent losses Monday, reflecting persistent worries about the course of the global economy.

Greek Finance Minister Evangelos Venizelos on Sunday pledged that Athens will continue to make budget cuts "at any political cost."

Venizelos was in Washington for talks on a new wave of cutbacks aimed at securing loan funds before state coffers run dry in October.

Speculation is mounting that the EU's second Greek rescue package, worth 159 billion euros and set up in July, will need to be revised.

For the second bailout to go through, eurozone lawmakers must approve a boost in funds for the current European Financial Stability Facility (EFSF) and the creation of its post-2013 successor, the European Stability Mechanism. (AFP)
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