“The euro declined for a fifth day against the yen after a gauge of German business confidence unexpectedly dropped in September, adding to concern the debt crisis is clouding the region’s economic outlook.
The 17-nation currency fell to the lowest in more than a week versus the dollar after German Chancellor Angela Merkel and French President Francois Hollande clashed over the weekend on a timetable to introduce joint oversight of euro-area banks. The yen strengthened versus all its major counterparts as Asian and European stocks slid, boosting demand for safer assets. The Australian dollar weakened on speculation growth in China, its biggest trading partner, is worsening.
“The data in the euro area is not good and the European Central Bank will need to keep policy loose, which will weigh on the currency,” said Raghav Subbarao, a foreign-exchange strategist at Barclays Plc in London. “The run-up in the euro looked overstretched and most people are turning more cautious at these levels.”Twitter