Currency Headlines
Euro Falls to Three-Week Low Versus Dollar as Recession Deepens
The euro slid to a three-week low against the dollar after a report showed Europe’s recession deepened more than economists forecast last quarter, sapping demand for the region’s assets.
The 17-nation currency dropped for a third day versus the yen as the data followed separate figures showing gross domestic product in Germany and France both shrank. The yen erased a decline after Russia’s finance minister said Group-of-20 nations should take a stronger stance against currency manipulation. New Zealand’s dollar rose to a 17-month high after manufacturing expanded. The euro has still strengthened about 4.7 percent against the dollar in the past three months.
The euro slumped 0.9 percent to $1.3334 at 6:03 a.m. in New York after falling to $1.3319, the lowest level since Jan. 24. The shared currency declined 0.9 percent to 124.50 yen after dropping 0.6 percent during the previous two days. Gross domestic product in euro area fell 0.6 percent from the previous three months, the European Union’s statistics office said. That’s the worst performance since the first quarter of 2009 and exceeded the 0.4 percent median forecast of economists in a Bloomberg News survey.
The currencies of euro-area neighbors also weakened, with the Hungarian Forint, Polish Zloty and Swedish Krona all sliding at least 0.9 percent versus the dollar.
Pound Falls for Second Day Versus Dollar Before Gilt Sale
U.K. bonds fell, sending 10-year yields to a 10-month high, as the nation prepares to sell 4 billion pounds ($6.2 billion) of five-year notes after Bank of England chief Mervyn King said Britain faced higher inflation.
Benchmark 10-year gilts fell for a second day and five-year rates reached the most in more than a month. The Debt Management Office will sell new gilts due in July 2018. The pound dropped to the lowest level in six months versus the dollar. Britain’s currency slumped yesterday after Bank of England Governor King said Britain faces higher inflation and a muted economic recovery. The yield difference between five- and 10-year gilts widened to the most since December 2011.
The 10-year gilt yield climbed two basis points, or 0.02 percentage point, to 2.23 percent at 9:43 a.m. London time after reaching 2.27 percent, the highest level since April 2. The 1.75 percent security maturing in September 2022 fell 0.14, or 1.40 pounds per 1,000-pound face amount, to 95.93. Five-year note yields rose one basis point to 1.01 percent.
The U.K. last sold five-year securities on Jan. 3, when it auctioned 3.75 billion pounds of gilts maturing in September 2017 at an average yield of 0.958 percent.
Euro Falls to Three-Week Low Versus Dollar as Recession Deepens
The euro slid to a three-week low against the dollar after a report showed Europe’s recession deepened more than economists forecast last quarter, sapping demand for the region’s assets.
The 17-nation currency dropped for a third day versus the yen as the data followed separate figures showing gross domestic product in Germany and France both shrank. The yen erased a decline after Russia’s finance minister said Group-of-20 nations should take a stronger stance against currency manipulation. New Zealand’s dollar rose to a 17-month high after manufacturing expanded. The euro has still strengthened about 4.7 percent against the dollar in the past three months.
The euro slumped 0.9 percent to $1.3334 at 6:03 a.m. in New York after falling to $1.3319, the lowest level since Jan. 24. The shared currency declined 0.9 percent to 124.50 yen after dropping 0.6 percent during the previous two days. Gross domestic product in euro area fell 0.6 percent from the previous three months, the European Union’s statistics office said. That’s the worst performance since the first quarter of 2009 and exceeded the 0.4 percent median forecast of economists in a Bloomberg News survey.
The currencies of euro-area neighbors also weakened, with the Hungarian Forint, Polish Zloty and Swedish Krona all sliding at least 0.9 percent versus the dollar.
Pound Falls for Second Day Versus Dollar Before Gilt Sale
U.K. bonds fell, sending 10-year yields to a 10-month high, as the nation prepares to sell 4 billion pounds ($6.2 billion) of five-year notes after Bank of England chief Mervyn King said Britain faced higher inflation.
Benchmark 10-year gilts fell for a second day and five-year rates reached the most in more than a month. The Debt Management Office will sell new gilts due in July 2018. The pound dropped to the lowest level in six months versus the dollar. Britain’s currency slumped yesterday after Bank of England Governor King said Britain faces higher inflation and a muted economic recovery. The yield difference between five- and 10-year gilts widened to the most since December 2011.
The 10-year gilt yield climbed two basis points, or 0.02 percentage point, to 2.23 percent at 9:43 a.m. London time after reaching 2.27 percent, the highest level since April 2. The 1.75 percent security maturing in September 2022 fell 0.14, or 1.40 pounds per 1,000-pound face amount, to 95.93. Five-year note yields rose one basis point to 1.01 percent.
The U.K. last sold five-year securities on Jan. 3, when it auctioned 3.75 billion pounds of gilts maturing in September 2017 at an average yield of 0.958 percent.
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