By TraderVox.com
Tradervox.com (Dublin) – The 17-nation currency dropped against the dollar to almost eight weeks low as concerns about the Greece securing a bailout package rose in the market. The currency dropped against most of the peers ahead of data that is expected to show the German economy is succumbing to the debt crisis in the region.
The Australian dollar was one of the gainers yesterday before the Reserve Bank of Australia makes its decision this week. The dollar index improved to its strongest in two-months as safety demand increased ahead of presidential election today.
Ken Takahashi, an assistant vice president at Sumitomo Mitsui Trust Bank Ltd in New York, noted that the euro is looking softer as the market immerses in risk aversion mood. He predicted that this might continue as Greek parliament votes on the austerity measures tomorrow. There is a possible Greek exit from the euroland if the measures are rejected.
Euro has declined against it counterparts as reports from Spain indicated that the country is working on austerity measures. The country is headed towards a deficit and is relying on 100billion euros aid to its banks. The country has been urged to seek bailout to avoid being degraded by and Credit Rating Company.
According to Klaus Regling, the managing director of the European Stability Mechanism, the euro-area needs more time to solve the Greece-triggered crisis as it is the worst to hit the region since 1930s. The market expects these comments to be supported by a Markit Economics report today. The report is projected to show the composite services and manufacturing index for the region remained unchanged at 45.8, the lowest in three years.
The 17-nation currency dropped by 0.1 percent against the dollar to trade at $1.2784 today in Tokyo. The currency had dropped earlier to its lowest since September 11 of $1.2767 yesterday. Against the yen, the shared currency lost 0.2 percent to exchange at 102.55. It had earlier fallen by 0.9 percent in the previous sessions.
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