The euro weakened against the yen and dollar for the first time in five days amid unrest in Spain as Prime Minister Mariano Rajoy deliberated over whether to request economic assistance for the indebted nation. The 17-member currency fell versus most of its 16 major peers after European leaders bickered last week at a meeting in Cyprus over the terms of bailouts and the role of the European Central Bank. Demonstrations two days ago in Madrid against fiscal cuts underpinned the political balancing act Rajoy faces as he seeks to pass more austerity measures. The euro touched a four-month high versus the yen on Sept. 14 after a Federal Reserve decision to expand monetary stimulus boosted higher- yielding assets. “People are still waiting for news out of Spain and it’s essentially concern about when it will formally request a bailout,� said Chris Walker, a foreign-exchange strategist at UBS AG (UBSN) in London. The euro is weakening as “the market is taking a negative slant after Friday’s finance ministers’ meeting.� The euro fell 0.3 percent to 102.65 yen at 9:24 a.m. London time after weakening as much as 0.3 percent. It rose to 103.02 last week, the most since May 14. The shared currency slid 0.3 percent to $1.3094 after climbing to $1.3169 on Sept. 14, the most since May 4. The euro has weakened 1.7 percent in the past six months, according to Bloomberg Correlation-Weighted Indexes. The dollar fell 1 percent and the yen strengthened 6.1 percent. To contact the reporters on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net; Neal Armstrong in London at narmstrong8@bloomberg.net To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

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