Monday, 29 Nov 2010

EUR Trading below $1.3200

The euro dropped to a new two month low versus the dollar in today's European trading after briefly bouncing to a high of $1.3301. The common currency is currently trading at $1.3170. The euro declined versus the dollar and yen despite Ireland's acceptance of the rescue package overnight. Against the yen, the euro is at Y110.71 from Y111.42

European Union finance ministers agreed Sunday to a EUR85 billion loan package for Ireland, this, however, failed to boost the euro as investors believe the debt issues in the region will persist, keeping negative pressure on the common currency versus the greenback and the Japanese yen.

The dollar continued its rise versus the yen today, hitting a high of Y84.20 earlier Monday, as concern military action on the Korean peninsula will escalate boosted demand for the safe haven USD.