The
euro fell toward a seven-week low against the dollar before Italy sells bonds
today after the nation’s inconclusive elections sparked the biggest advance in
sovereign yields in 14 months.
The euro
is heading for its first monthly loss since July as European Central Bank
President Mario Draghi prepares to give a speech in Munich. This week’s vote in
Italy produced a hung parliament, creating the risk of another election later
this year and a retreat from austerity measures imposed to stem the debt
crisis. The euro fell toward a seven-week low against the dollar before Italy
sells bonds today after the nation’s inconclusive elections sparked the biggest
advance in sovereign yields in 14 months.
“These Italian elections are further evidence
that Europeans are a bit over this whole austerity phase,” said Stan Shamu, a
markets strategist with IG Markets Ltd. in Melbourne. “If we continue to see
yields -- particularly in Italy -- spike higher, then that would be a further
negative for the euro.”
The
euro slid 0.1 percent to $1.3047 as of 10:31 a.m. in Tokyo from yesterday, when
it fell as low as $1.3018, the least since Jan. 7. The single currency lost 0.4
percent to 119.69 yen. Japan’s currency rose 0.3 percent to 91.72 per dollar
after earlier falling as much as 0.3 percent.
The
euro is poised to fall 3.9 percent this month, snapping six months of gains.
(Source:
Bloomberg)