Rate speculation, IMF statement hurt euro

Story link: Rate speculation, IMF statement hurt euro

The euro weakened against the US dollar and the Japanese yen on Monday on increased expectations that the European Central Bank will cut interest rates when it meets next.

The shared currency was also hurt by a statement from the International Monetary Fund which said that Europe has not adequately recognized the need to stimulate the Eurozone economy.

At just past noon in New York a euro was worth $1.3353 while it took ¥118.7942 to buy a euro and ¥88.965 to buy a US dollar.

The yen also gained against the Australian and New Zealand dollars on the chance that investors will again step away from risky carry trades financed by the low-yielding yen.

In early afternoon trade in New York the yen traded at ¥60.6029 to the Australian dollar and it was at ¥51.5607 to the New Zealand currency.

Meanwhile, the pound was weaker in relation to the US dollar, the euro and the yen on declines in equities markets and on a report from the Confederation of British Industry which said that profits and revenues in the UK financial sector declined at a record rate in the fourth quarter of 2008.

The pound traded at 89.99p to the euro in New York while at the same time it took $1.4839 or ¥132.0151 to buy a pound.