Euro Falls as German Survey Shows Region’s Slow Growth
The 17-nation currency weakened from four-month highs versus the dollar and yen amid concern Spain will delay seeking a bailout needed to resolve its financial turmoil. Australia’s dollar dropped for a second day after policy makers said the strength of the currency was damaging economic growth. Sweden’s krona rallied after Riksbank Governor Stefan Ingves said the nation’s growth won’t spark inflation.
“Monetary stimulus has certainly supported improved market sentiment, but the improvement happened without any noticeable change in global economic growth, which is somewhat unusual,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. “We’ve seen a tremendous rally in risk assets in the past couple of weeks and it’s time for a breather.”
The euro dropped 0.4 percent to $1.3063 at 9:06 a.m. in New York after appreciating to $1.3172 yesterday, the strongest level since May 4. The common currency declined 0.5 percent to 102.71 yen. It rose to 103.86 yesterday, the highest since May 9. The yen was little changed at 78.63 per dollar.