“The euro fell to a two-week low against the dollar after Spain’s central bank said gross domestic product kept dropping at a “significant pace” this quarter, stoking concern the region’s debt crisis is worsening.
The 17-nation currency weakened for a seventh day against the yen after the German, Dutch and Finnish governments said Europe’s rescue fund should assume a limited role in banking recapitalizations. The yen rose against all its major counterparts on speculation central banks around the world will struggle to revive growth, spurring demand for safer assets. Sweden’s krona declined after a report showed consumer confidence fell more than economists forecast.
“The markets are reacting to the negative news flow we’ve seen out of Spain, which destabilizes investor sentiment and pressures the euro,” said Jeremy Stretch, head of foreign- exchange strategy at Canadian Imperial Bank of Commerce in London. “The optimism we saw priced in to markets after action from central banks is waning.”
If you enjoy the content at iBankCoin, please follow us on Twitter
