BLBG: Euro Pares Gain Versus Dollar Amid European Banking Stress Test Concern
The euro pared its gain versus the dollar amid concern that the release of European bank stress test results this week will show the region’s lender may need greater support.
“People are nervous ahead of the release of the stress test,” said Jessica Hoversen, a Chicago-based analyst at the futures broker MF Global Holdings Ltd. “European officials are trying to mitigate fears by saying that the banks will pass, but the market is still nervous of the amount of capital that may need to be raised.”
The euro traded at $1.2944 at 8:55 a.m. in New York, after earlier rising as high as $1.2992, from $1.2930 on July 16. It reached $1.3008 on July 16, the strongest level since May 10. The single currency climbed 0.7 percent versus the Japanese yen to 112.73. The euro appreciated 0.4 percent to 84.84 U.K. pence.
European regulators are examining the strength of 91 banks to determine whether they can survive potential losses on sovereign-debt holdings. Stress-test results will be released July 23.
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net
