BLBG:Euro Falls From Two-Week High Versus Dollar on Greek Talks, Stock Losses
The euro declined from a two-week high against the dollar as European stocks fell and Greek officials and private creditors struggled to agree on a debt swap plan.
The dollar rose against all but one of its 16 major counterparts as the stock declined boosted demand for the safest assets. The 17-nation euro still headed for its biggest weekly gain versus the greenback in three months after Spain and France sold bonds at lower yields yesterday in their first sales of medium and long-term debt since being downgraded by Standard & Poor’s last week.
“The euro remains a very vulnerable currency, there is still an awful lot to be done in Greece,” said Jane Foley, a senior currency strategist at Rabobank International in London. “Politically nothing has changed since last year and there’s still a lot of pain to come. I am still quite wary about this upside we’ve seen in the euro.”
The euro fell 0.3 percent to $1.2935 at 9:16 a.m. London time after rising to $1.2986, the strongest since Jan. 4. The decline trimmed its weekly advance to 2 percent. The euro declined 0.1 percent to 99.90 yen. The yen weakened 0.2 percent to 77.24 per dollar.
To contact the reporters on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
