The euro declined to a three-week low against the dollar and weakened against the yen as concern the European debt crisis is worsening damped demand for the region’s assets. The single currency dropped for a second day after Dutch newspaper Het Financieele Dagblad cited European Central Bank Governing Council member Nout Wellink as saying the emergency fund for euro-zone countries should be doubled. The euro also declined on concern a reshuffling of Greek Prime Minister George Papandreou’s Cabinet will lead to a negotiation of the terms of the country’s rescue package. The Australian and New Zealand dollars dropped as Asian stocks declined. “The market is still quite concerned about Greece,” said Matthew Brady, executive director for foreign exchange at JPMorgan Chase & Co. in Sydney. “It’s going to be a choppy ride for the euro, there’s no doubt about that. I’d prefer to still sell any rallies in euro.” The euro declined to $1.4137 as of 6:08 a.m. in London from $1.4181 in New York yesterday, after earlier sliding to $1.4113, the lowest level since May 26. The currency dropped 0.3 percent to 114.48 yen. The dollar was little changed at 80.99 yen. Australia’s currency fell to $1.0533 from $1.0577 yesterday, after weakening to $1.0521 on June 13, the least since May 26. New Zealand’s dollar declined 0.5 percent to 80.29 cents. To contact the reporters on this story: Kristine Aquino in Singapore at Kaquino1@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net To contact the editor responsible for this story: Nicholas Reynolds at nreynolds2@bloomberg.net

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