By: Barbara Zigah
The Euro continues to struggle against the U.S. Dollar and Japanese Yen, in Asian trading today approaching a 2-month low, as investors continue to be nervous about Eurozone’s debt crisis which is in danger of escalating. As reported at 2:42 p.m. (JST) in Tokyo, the Euro slipped .2%, trading at $1.3312; the Euro also feel against the Yen, trading at 111.15 Yen, a decline of .2%; yesterday, it had slipped as low as 110.32 Yen, a price not seen in nearly 2 months.
A recent proposal suggested by Germany is putting pressure on the Euro; some market players are concerned that private investors will be forced to accept a loss if the European Union adoptions the German proposal, which could force all of the debt-burdened nations to request a financial bail-out.
In the wake of the Euro’s softening, the U.S. Dollar is gaining strength; overnight, the U.S. Dollar Index, a gauge of the greenback’s strength against major currencies, approached a 2-month peak of near 80.00 .DXY. The greenback did, however, slip against the Japanese Yen, falling to 83.50 Yen, a .1% decline; traders suggest it will trade within narrow ranges over the near term.