BLBG:Euro Weakens Against Dollar After Dutch Budget Deficit Forecasts
The euro fell versus the dollar after the Netherlands said its budget deficit will breach the European Union’s limit for this year and 2014.
The euro also slid against the yen after the government’s planning agency said today in a statement that the Dutch deficit will be 3.3 percent of gross domestic product in 2013 and 3.4 percent in 2014. The New Zealand dollar rose after an index showed business confidence increased.
“The Dutch budget-deficit target forecasts look to be above the 3 percent EU target for this year and next and there are downgrade risks for the Netherlands around that,” saidMelinda Burgess, a currency strategist at Royal Bank of Scotland Group Plc in London. “This adds further weight to our view that we should see further downside for the euro from here. Fiscal and growth worries in the region could really come to the fore.”
The 17-nation currency weakened 0.2 percent to $1.3118 at 10:09 a.m. London time. It also slid 0.2 percent to 120.91 yen. The dollar was little changed at 92.16 yen.
The New Zealand dollar strengthened 0.4 percent to 83.12 U.S. cents.
To contact the reporter on this story: Neal Armstrong in London at narmstrong8@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
