24/05/2011
Euro falls to 2-month low against US dollar on Greek debt worries
LONDON/TOKYO -- The euro fell heavily on Monday, striking a two-month low against the U.S. dollar, as Greek debt worries resurfaced with a bang and as data pointed to slowing economic growth across the eurozone.
The European single currency tumbled to US$1.3982 in London trading from US$1.4155 late in New York on Friday. Monday's level was the lowest since March 18.
In London on Monday, the euro changed hands at US$1.3982 against US$1.4155 late in New York on Friday, at 114.06 yen (115.66), 0.8682 pounds (0.8715) and 1.2336 Swiss francs (1.2421).
The U.S. dollar stood at 81.52 yen (81.70) and 0.8834 Swiss francs (0.8772).
The pound was at US$1.6115 (1.6236).
On the London Bullion Market, gold prices grew to US$1,510.43 an ounce from US$1,491 late on Friday.
In Asia on Monday, the euro fell against other major currencies, weighed down by rekindled worries about eurozone sovereign debt after Greece's credit rating was slashed, dealers said.
The euro fell to US$1.4078 in Tokyo afternoon trading from 1.4155 in New York late Friday. The single European currency fetched 115.36 yen, down from 115.66.
The U.S. dollar rose to 81.94 yen from 81.70 yen.
The U.S. dollar rose against regional Asian currencies.
The U.S. dollar rose to SG$1.2446 from SG$1.2349 on Friday, to 8,556.00 Indonesian rupiah from 8,533.00, to NT$28.86 from NT$28.76 and to 1,093.10 Korean won from 1,082.30. The U.S. dollar also firmed to 30.35 Thai baht from 30.25 and at 43.34 Philippine pesos from 43.14.
The euro may fall below US$1.4000 this week amid ongoing concerns that Greek debt problems may spread to other nations on Europe's periphery, said Yoshio Yoshida, a trader at Mizuho Trust and Banking.
Uncertainties over the European economy suggest that the European Central Bank will not have a reason to justify an immediate rate hike, he said.
“The euro is likely to search for the bottom this week as Greek debt woes appear to be spreading to other countries,” Yoshida told Dow Jones Newswires.
