The euro declined versus the yen, approaching a one-week low, on concern rating companies will cut the rankings of nations such as Germany and France if European leaders fail to agree a plan to curb the debt crisis this week. The 17-nation euro dropped for the fourth time in five days against Japan’s currency before a European Central Bank meeting today and as regional leaders gather in Brussels to discuss the debt crisis. Australia’s dollar weakened against most of its major counterparts after a government report showed employers cut jobs for the first time in three months. “Sentiment has turned a little negative,� said Jeremy Stretch, executive director of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “There’s concern that we may see a perpetuation of the muddle-along strategy from the European Union and the big landmark deal will once again prove to be elusive.� The euro fell 0.3 percent to 103.83 yen at 9:33 a.m. in London after dropping to 103.64 yen on Dec. 6, the lowest since Nov. 30. The single currency weakened 0.1 percent to $1.3399. The yen gained 0.3 percent to 77.48 per dollar. Standard & Poor’s said this week it may cut the credit ratings of Germany, France and 13 other members of the euro due to “continuing disagreements� among policy makers on how to tackle the debt crisis. French President Nicolas Sarkozy and German Chancellor Angela Merkel have proposed amending European treaties to tighten rules on deficit spending and water down provisions demanding investor losses. In a letter to European Union President Herman Van Rompuy, the French and German leaders said they want a decision at the summit starting today so the steps can be ready by March 2012. Aussie Falls Australia’s currency fell versus the dollar and the yen after the statistics bureau said the number of people employed fell by 6,300 last month after a revised increase of 16,800 the previous month. The median estimate in a Bloomberg News survey of economists was for a 10,000 gain. “Full-time jobs dropped a lot� said Lee Wai Tuck, a strategist at Forecast Pte in Singapore. “This will trigger some concerns over the jobs market in Australia and, of course, the economy. The Aussie dropped.� The so-called Aussie declined 0.2 percent to $1.0279, and fell 0.4 percent to 79.62 yen. To contact the reporters on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net; Keith Jenkins in London at kjenkins3@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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