“The euro slumped to a record low against the Swiss franc amid deepening concern Europe’s sovereign-debt crisis will worsen, reducing the appeal of holding the region’s assets.
The yen gained versus all but one of its 16 most-traded peers.Spain’s Socialist party suffered its worst electoral defeat in more than 30 years and Standard & Poor’s on May 20 said it may lower Italy’s credit rating. The Dollar Index climbed to its highest since April 1 as a Chinese manufacturing gauge fell to a 10-month low, boosting demand for the American currency as a haven amid concern the global economic recovery will sputter.
“There’s an element of contagion related to the European crisis and growth slowing in China” hurting the euro, said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in London. The single currency may test its 100-day moving average of around $1.3969, he said.
The euro weakened 0.3 percent to 1.2393 francs as of 7:30 a.m. in New York, after trading earlier at 1.2324, the least since its 1999 debut. The European currency dropped 1 percent to $1.4015 after reaching $1.3970, its weakest since March 17. It slipped to 114.63 yen, from 115.69 yen. The dollar traded at 81.79 yen, from 81.70. The Australian dollar fell against all but two of its 16 major peers.”
If you enjoy the content at iBankCoin, please follow us on Twitter
