Do More With Reuters
Partner Services

FOREX-Euro in biggest one-day loss vs dollar in 2 months

Fri Mar 27, 2009 9:19pm IST
 
Email | Print | | Single Page
[-] Text [+]

* Euro slides on Steinbrueck's EU fiscal stability remarks

* Euro has biggest one-day slide vs dollar since Jan. 9

* Dollar rallies broadly on Japan, Russia G20 view (Recasts, adds comment, updates prices)

By Nick Olivari

NEW YORK, March 27 (Reuters) - The euro endured its biggest one-day loss against the dollar in more than two months on Friday after Germany's finance minister said fiscal irresponsibility in Europe could put the currency at risk.

Traders said the comments by German finance minister Peer Steinbrueck, along with weaker-than-forecast euro zone industrial orders and German inflation data, triggered pre-placed euro sell orders.

The greenback drew support ahead of next week's Group of 20 meeting while the yen rallied on last-minute fund repatriation by Japanese investors ahead of fiscal year end and expectations for further flows to Japan due to a change in tax regulation.

"Germany has a very direct impact on how the euro performs," said Fabian Eliasson, vice president of foreign exchange sales at Mizuho Corporate Bank in New York. But the longer term impact "is hard to gauge until you see how other countries react."

Steinbrueck told the German parliament that the euro was at risk if the European Union's Stability and Growth Pact, which governs the region's rules on budget deficits, is not taken seriously. For more see [ID:nLR49443].  Continued...

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India during the Reuters India Investment Summit in Mumbai and Bangalore.  Full Coverage | Blog 

Reuters correspondent Sourav Mishra recounts the unforgettable night of Nov. 26 at Mumbai's Leopold Cafe
Back from the Dead
REUTERS WITNESS - 26/11

Reuters correspondent Sourav Mishra recounts the night of Nov. 26 at Leopold Cafe.  Full Article | Full Coverage 

One Year Later

A look back at the events of 26/11 ahead of the first anniversary of the militant attacks in Mumbai that killed 166 people.  Slideshow | Full Coverage 

Photo
Ageing Santa gets $100,000 facelift for Christmas Friday, 20 Nov 2009 

WELLINGTON (Reuters) - A Santa in New Zealand with a droopy eye has received a NZ$100,000 ($74,000) face-lift in the run-up to Christmas so that his aging face does not scare children.  Full Article