By TraderVox.com
Tradervov.com (Dublin) – The 17-nation currency has declined to near three-week low against the US dollar as Mariano Rajoy, the Spanish Prime Minister and the Mario Monti the Italian Premier prepare to meet as euro-zone economic outlook worsens. The US currency and the Japanese yen rose against the euro as data from euro region boosted the demand for safety in the market. The euro declined as a report from Spain showed that retail sales fell by 11 percent last month from a year earlier. Yen increased to two weeks high after German Finance Minister Wolfgang Schaeuble opposed Greece’s debt restructuring proposal.
According to Sebastien Galy, a senior strategist in New York at Societe General SA, the market is on a risk-off mood and most traders are bidding the dollar across the market. He added that this is an effect of market paring down, suggesting that it might continue like this as the market assesses the real impact of Hurricane Sandy. The euro dropped against most major currencies after the German Finance Minister’s speech. He was talking at an interview before European policy makers receives a report about Greece progress in achieving the agreed targets. The report was compiled by the European Commission, European Central Bank, and International Monetary Fund.
The 17-nation currency has fallen by 1.7 percent in the last six months, making it the second worst performer after the Swiss franc. The Japanese currency has against by 2.3 percent while the US dollar has added 1.4 percent. The euro has gained 0.3 percent against the dollar this month. After the retail report from Spain and Wolfgang comments, the euro dropped by 0.3 percent against the dollar to trade at $1.2899 at the start of trading in New York. It had earlier touched $1.2887; the currency had dropped to its lowest since October 11 of $1.2883 on October 26. The common currency fell by 0.3 percent against the yen to exchange at 102.70 yen. It had earlier dropped to 102.52, the least it has been since October 16.
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