The euro erased gains versus the dollar and yen after European stocks declined, curbing investor demand for higher-yielding assets. The shared currency headed for a fourth weekly decline against the yen after Moody’s Investors Service downgraded the debt ratings of eight Greek banks. The euro strengthened earlier after the Group of 20 nations pledged to address risks to the global economy. “It’s all about the euro-zone debt problems right now,” said John Hardy, head of foreign-exchange strategy at Saxo Bank A/S in London. “Over the short-term, the euro will head lower,” said Hardy, who predicted the currency will weaken to $1.25 next year. The euro fell 0.1 percent to $1.3453 at 6:46 a.m. in New York, erasing an 0.8 percent advance, and leaving its decline this week at 2.4 percent. The shared currency was little changed at 102.63 yen, after sliding to 102.22 yesterday, the weakest level since 2001. The euro has fallen 3.2 percent versus the yen this week. The Stoxx Europe 600 Index dropped 1.5 percent, after climbing as much as 1.2 percent. U.S. stock-index futures also declined. Traders sold euros this week on concern Europe won’t contain its debt crisis, even after Greece accelerated budget cuts to qualify for next month’s payment under a 110 billion- euro international bailout. The G-20 nations are “committed” to a strong and coordinated international response to address the renewed challenges facing the global economy,” finance chiefs said in a statement released after talks yesterday in Washington. To contact the reporter on this story: Garth Theunissen in London gtheunissen@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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