Euro drops as Traders Take Profit
The Euro fell across the board today, as currency traders took profits from the Euro’s surge to a 2½ month high versus the U.S. Dollar and its highest level ever against the Pound Sterling. The U.S Dollar dropped near to its lowest price in nearly 13 years versus the Japanese Yen, reversing short gains made following the interest rate reduction by Japan’s central bank, as a dismal economic situation in the United States continued to take a bite out of the U.S. currency.
In early trading in London today, the Euro fell abruptly, as traders realized that its broad gains this week may have gone too far. The Euro appears to be on track to gain more that 5% this week against the U.S. Dollar, which will be the biggest gain since the single currency was launched in 1999. According to Phyllis Papadavid of London’s Societe General, the Euro’s movement has been dramatic over the past week, resulting in some investors taking profit from it.
On December 19, 2008 by 09:50 GMT in London, the Euro had dropped by 1.1% to $1.4131, dropping by 3 cents from a high of $1.4309. Euro losses were broad and were down by 2.5% against the Japanese Yen and traded at 124.45 Yen. Against the Pound Sterling, the Euro fell by1.2% to 93.78 pence, while the U.S. Dollar fell by almost 0.8% against the Japanese Yen to 88.62 Yen.