Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Euro stays weak amid eurozone debt fears

TOKYO, Jan 6 – The euro faced further selling pressure in Asia Friday due to intensifying fears over the European sovereign debt crisis.

The single currency fetched $1.2787 in Tokyo afternoon trade after sinking in New York late Thursday to as low as $1.2771 — its lowest point since September 2010.

It was also at 98.71 yen after falling to an 11-year low of 98.48 yen in New York.

The dollar was at 77.18 yen, compared with 77.18 yen in New York.

The euro will likely face a ceiling at $1.2850 even if short-covering kicks in after Thursday’s tumble, Osao Iizuka, head of FX trading at Sumitomo Trust and Banking, said.

“The upside will be heavy and any rebound should be limited,” he told Dow Jones Newswires, adding activity would be limited during Asian trade ahead of the US December non-farm jobs report due later in the day.

A senior dealer at a Japanese bank expected euro-selling demand to persist on the back of growing pressure on European banks to reduce their sovereign debt holdings.

Dealers said sentiment was hit badly Thursday after Spain’s economy minister warned that the country’s banks could need 50 billion euros to cover bad loan losses.

A surprise visit by Italian Prime Minister Mario Monti to Brussels also stoked fresh uncertainty, although diplomatic sources in Belgium said his trip was completely private.

Advertisement. Scroll to continue reading.

US data released from a private payrolls firm showing more jobs than expected were created last month added to hopes that the economy is picking up, which has boosted the dollar.

Against other Asian currencies the dollar was mostly higher. It firmed to 1,159.40 South Korean won from 1,150.30 on Thursday, to 44.09 Philippine pesos from 43.91, and to 31.63 Thai baht from 31.52.

The dollar edged up to 9,155.00 Indonesian rupiah from 9,150.00 and to Sg$1.2936 from Sg$1.2878, but it fell to Tw$30.20 from Tw$30.26.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...