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Euro Under Pressure in Asian Trade

Posted by on Monday, September 19, 2011, 17:55
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euroThe euro fell against the dollar in Asian trade Monday after eurozone finance ministers delayed the release of blocked bailout funds for Greece, analysts said.

Investors were also waiting for the results of a two-day meeting of the US central bank’s Federal Open Market Committee, which traders hope will announce fresh monetary loosening measures, analysts said.

The euro was at $1.3653 in Singapore morning trade, compared with 1.3797 in New York trade Friday.

The dollar rose to 76.91 Japanese yen from 76.77, while the euro changed hands at 104.99 yen, from 106.41 yen.

Japanese financial markets were closed Monday for a public holiday.

The losses for the single currency almost erased a rally at the end of last week when the European Central Bank, along with its US, Japanese, Swiss and British counterparts, agreed to take concerted action to provide dollars for European banks that needed the greenback.

“Currencies will remain defensive as long as markets are unconvinced that eurozone (governments) are prepared to act decisively to contain their debt crisis,” DBS Bank said in a market commentary.

Last week eurozone finance ministers meeting in Poland decided to delay until October a decision on eight billion euros ($11 billion) of bailout loans for Athens.

The loans have been blocked until Greece persuades auditors it is on track to cut its deficit.

US Treasury Secretary Timothy Geithner, who attended the meeting, and his German counterpart Wolfgang Schaeuble also disagreed over Europe’s handling of the debt crisis.

The disagreements within Europe and with the United States could affect attempts to mount coordinated action to deal with the crisis before it gets out of hand and batters the global financial system.

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