The euro declined for a fifth day against the yen after a European report showed the region’s economy contracted last quarter, adding to signs the debt crisis is hampering growth.
The 17-nation currency dropped to a two-week low versus the dollar as investors debated whether to accept the conditions of a Greek bond swap under its private-sector involvement plan.
The euro slid 1.3 percent to 106.42 yen at 7:01 a.m. in New York, extending its decline in the past week to 1.7 percent. The common currency fell 0.6 percent to $1.3134 after dropping to $1.3131, the lowest level since Feb. 17. The dollar slipped 0.7 percent to 81.03 yen.
Europe’s gross domestic product shrank 0.3 percent from the third quarter, the region’s statistics office said today, confirming an initial estimate published on Feb. 15. Exports fell 0.4 percent and household spending declined 0.4 percent.
The ECB will keep its benchmark interest rate at a record low 1 percent on March 8th, as Bloomberg stated.
Futures traders are betting the euro will extend losses against the dollar, according to figures from the Washington- based Commodity Futures Trading Commission. The difference in the number of wagers by hedge funds and other large speculators on a decline in the euro compared with those on a gain was 109,674 on Feb. 28. It reached a record 171,347 in January.
To be mentioned that Euro has weakened 3.2 percent in the past six months.