Euro Faces Pressure as Irish Junior Party Balks at Rescue

By: Barbara Zigah

The common currency Euro was under pressure in lackluster Asian trading as investor concerns grew that peripheral debt in the Eurozone will worsen, in spite of Ireland’s recent request for aid. As reported at 2:36 p.m. (EST) in Sydney, the Euro slipped against the U.S. Dollar, at one point trading at $1.3551, below yesterday’s session trough of $1.3574.

The Euro also fell against the Japanese Yen, slipping to 112.98 Yen from Monday’s late New York trade of 113.04 Yen, and well off the 2-week high of nearly 115.00 Yen. The concern is that the European Union is not addressing peripheral debt crises as quickly as they should, specifically as it regards Portuguese debt. To that end, some finance ministers are pressing the E.U. authorities to move more aggressively toward finding resolution.

In Ireland, the news of the official request for assistance led to a call for new elections by the junior coalition party in Ireland, who are hoping to block the action. Nonetheless, the Irish Prime Minister, Brian Cowen, has vowed to remain in office until the austerity budget plan which is required by the bailout package’s covenants are put through, after which time he will call for a fresh election.