(RTTNews) - The euro declined against its major counterparts in early European trading on Friday as fears of global slowdown grew amid a series of disappointing U.S. economic reports.
A report from the Wall Street Journal on Thursday suggested that U.S. federal and state authorities are seeking to intensify their scrutiny of the U.S. arms of European financial institutions.
Meanwhile, the European Central Bank Executive Board member Juergen Stark has warned against lower interest rates and common euro bonds, reports said today citing the policymaker's interview with the German daily Handelsblatt. "Keeping interest rates too low for too long carries risks," Stark was quoted as saying.
Following weak Asian stocks, European stocks are also trading lower today. U.K.'s FTSE 100 index is now falling by 2.3 percent, Germany's DAX is down by 3.7 percent and France's CAC 40 index is losing 2.4 percent.
The euro fell to a 1-week low of 109.10 against the yen, compared to an early Asian session high of 110.20. If the euro weakens further, it may likely target the 108.5 level. At yesterday's close, the euro-yen pair was quoted at 109.75.
Against the US dollar, the euro slipped to a 4-day low of 1.4261. On the downside, 1.420 is seen as the next target level for the European currency. The euro-dollar pair was worth 1.4329 at yesterday's close.
The euro that closed yesterday's trading at 0.8668 against the pound dropped to a 2-week low of 0.8656. The next downside target level for the euro is seen at 0.864.
The euro declined to 1.1258 against the Swiss franc, down from yesterday's close of 1.1384. If the euro falls further, 1.120 is seen as the next target level.
