Major Forex NewsEuro Falls Toward Four-Month Low as Output Contracts; Yen Rises
The euro fell toward a four-month low against the dollar after a report showed services and manufacturing output in the region contracted in March, adding to signs the economy is struggling to emerge from recession.
Europe’s shared currency dropped against all but two of its 16 major peers after separate data showed manufacturing in Germany, the region’s biggest economy, unexpectedly shrank this month. The European Central Bank said it will cut Cypriot banks off from emergency funds after March 25 unless the Mediterranean island nation agrees on a bailout with international creditors. The yen strengthened before Haruhiko Kuroda’s first press briefing as Japan’s central bank governor.
The euro fell 0.2 percent to $1.2905 at 10:21 a.m. London time. It dropped to $1.2844 on March 19, the lowest since Nov. 22. Europe’s shared currency slid 0.8 percent to 123.19 yen. Japan’s currency appreciated 0.6 percent to 95.46 per dollar after reaching 96.71 on March 12, the weakest since August 2009.
A composite index based on a survey of purchasing managers in the euro-region services and manufacturing industries fell to 46.5 from 47.9 in February, London-based Markit Economics said today. Analysts had forecast a reading of 48.2, according to the median of 23 estimates in a Bloomberg survey. A reading below 50 indicates contraction.
