Euro weakens versus yen, dollar, pound

Euro weakens versus yen, dollar, pound

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The euro was weaker in relation to the yen, the US dollar, the pound, and several other major currencies on Monday ahead of the scheduled release of the latest Ifo survey on the business climate, due on Thursday and suspicions that the declining economic growth could force the European Central Bank to rethink its determination not to cut interest rates this year.

The euro traded at $1.4440 in relation to the US dollar at just before 1 p.m. New York time, the fifth day of decline versus the greenback as US markets were closed for the Martin Luther King Day observance, while it traded at ¥153.1001 to the euro.

The yen was stronger against all major currencies on concerns that companies in Europe could begin defaulting on bonds, worries which made investors shy away from risky carry trades.

The biggest gains for the yen came in relation to the Brazilian real and the South African rand as it traded at ¥59.562 to the real and at ¥14.689 to the rand.

The US dollar dropped to ¥105.91 versus the Japanese currency before trading at ¥106.0250 at early afternoon New York time, while the yen traded at ¥206.1496 to the pound.

While the pound declined in relation to the yen and the US dollar, it saw gains versus the euro on comments from a member of the ECB’s council that growth could slow more than expected in the Eurozone.

The pound traded at 74.27p to the euro while it took $1.9443 to buy a pound.