Friday, March 30, 2012

Euro falls on dollar

NEW YORK: The euro slipped against the dollar Thursday ahead of the EU finance ministers' crucial meeting on expanding the eurozone's emergency intervention fund.

With worries about Spain's finances also clouding the markets, at 2100 GMT the euro traded at $1.3301, down from $1.3316 Wednesday.

Eurozone finance ministers meet on Friday and Saturday in Copenhagen to discuss expanding the eurozone's financial firewall by combining the European Financial Stability Facility, used to rescue Portugal, Ireland and Greece, with the permanent European Stability Mechanism.

To do so would at least temporarily raise the size of the rescue mechanism to 940 billion euros ($1.25 billion) -- an amount seen necessary to stem any future contagion in financial markets driven by weak eurozone government finances.

"Risk aversion drove the euro-dollar rate lower today but the prospect of a larger firewall that could lift investor confidence and shield the region from contagion prevented a steeper slide in the currency," said Kathy Lien of GFT.

The yen strengthened after Wednesday's fall: the dollar slipped to 82.42 yen from 82.86 yen, while the euro moved to 109.64 yen from 110.36.

The dollar gained on the Swiss currency, rising to 0.9062 francs from 0.9051.

The British pound rose to $1.5955 from $1.5887.

View the original article here

Source From Channel News Asia

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