By: Barbara Zigah
Ahead of this week’s meetings of European finance ministers, the common currency fell to a 7-week low against the U.S. Dollar as well as a host of other major currencies. The U.S. Dollar Index also rose to a 6-week peak. One senior currency analyst in Japan noted that preemptive moves against the Euro are unlikely, with investor concerns that Greek debt restructuring concerns could spread to other fiscally troubled Eurozone nations, with Ireland being seen as the most likely to need further assistance.
As reported at 1:57 p.m. (JMT) in Tokyo, the Euro slipped to $1.4100, down from Friday’s late trade in New York of $1.4119; earlier in the session the Euro hit its lowest price since late March, trading at $1.4048 against the greenback. The Euro also slipped against the safe haven Japanese Yen, trading at 114.14 Yen, off from 114.06 Yen late Friday. Earlier the Euro had struck 113.42 Yen, the lowest level since mid-March when a joint intervention by the Group of 7 interceded in the Yen’s rise.
Ministers will be discussing the finance needs of Greek, who are expected to ask for an additional €110 billion in aid from the E.U./IMF Fund. Also expected to add some uncertainty to the discussions are criminal charges placed against the Managing Director of the IMF in New York. Officials from the IMF confirm that the deputy Managing Director will act in Dominique Strauss-Kahn’s stead.