BS: Yen Gains on Slowing China Import Growth; Krona Advances
The euro fell against most of its major counterparts after an agreement by European leaders to aid Spanish banks did little to alleviate concern that the region’s financial crisis remains unresolved.
The pound slid as Bank of England Governor Mervyn King said the U.K. economy doesn’t show “great signs” of recovering from recession. The euro fell to its weakest level in more than a month against the yen even as European Union officials said they will jump-start as much as 100 billion euros ($123 billion) in emergency loans to shore up Spain’s banks.
“There’s been a muted reaction to the agreement from the EU finance-minister summit to backstop the Spanish debt,” Carl Forcheski, a director on the corporate currency sales desk at Societe Generale SA in New York, said in a telephone interview. “It’s more of a buy on the rumor, sell on the news kind of effect.”
The euro weakened 0.3 percent to $1.2274 at 8:39 a.m. New York time. The 17-nation currency slid 0.5 percent to 97.44 yen.
To contact the reporter on this story: Joseph Ciolli in New York at jciolli@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
