By: Barbara Zigah
The common currency continues to be put under significant pressure, today in Tokyo hovering near an 11-week trough versus the U.S. Dollar and the Japanese Yen, even as investors await word from the Eurozone policymakers on their next step to contain the Eurozone crisis.
As reported at 12:33 p.m. (JST), the Euro traded against the greenback at $1.3010, slightly higher than the $1.3000 it held at earlier in the trading day; last month, the Euro lost 7% of its value against the U.S. Dollar. The Euro also lost ground against the Japanese Yen, slipped to 108.33 Yen; that low was last seen in mid-September when the Japanese Ministry of Finance intervened in the Yen’s rise.
The Eurozone’s troubles continue to pile up; most recently, Standard & Poor’s, the debt rating agency, has warned that Portuguese sovereign debt is likely to be downgraded. According to the press release, their current A- rating is under review as a result of fiscal uncertainties and the strong likelihood of their seeking a bailout from the E.U./IMF. The Portuguese Prime Minister, meanwhile, continues to insist that the country is not in need of help from outside sources.
Markets will be keenly watching the European Central Bank meeting which will take place tomorrow to learn what efforts might be made to stem the Euro’s apparent freefall.