BLBG: Euro May Extend Drop as China Signals Caution, BNY Mellon Says
By Paul Dobson
April 19 (Bloomberg) -- The euro may extend losses after China’s State Administration of Foreign Exchange signaled caution on the region’s government debt today, Bank of New York Mellon Corp. said.
Greece’s debt crisis may trigger a chain reaction and slow economic growth in the euro zone, China’s SAFE, the currency regulator, said in a statement.
“This indicates there are concerns within China,” Simon Derrick, the London-based chief currency strategist at BNY Mellon, said today in a telephone interview. “Some of the largest reserve managers are cautious; that will provide a continued weight on the euro.”
The euro fell a third day against the dollar, dropping 0.6 percent to $1.3428 as of 12:21 p.m. in London.
To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net
