Eurozone growth, debt concerns hit euro
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NEW YORK, Nov 8 AFP
November 09 2012, 10:04AM
The euro has fallen against the dollar, dragged down by the eurozone's glum economic outlook and long-running sovereign debt crisis.
Samarjit Shankar at Bank of New York Mellon said on Thursday the euro slid for the fifth straight session against the US currency.
"The unrelenting spate of negative developments amid ongoing bailout negotiations in Greece has brought the region's sovereign debt crisis on the front-burner yet again," he said.
At 2200 GMT (0900 AEDT) the euro fetched $1.2748, down from $1.2767 late on Wednesday.
The Japanese currency gained ground, as the euro fell to 101.27 yen from 102.09 yen and the dollar dropped to 79.43 yen from 79.96 yen.
In widely expected moves, the Bank of England and European Central Bank held their main lending rates at 0.50 per cent and 0.75 per cent, respectively.
The unchanged monetary policies raised concerns "that the stimulus spigot is getting tighter," said Christopher Vecchio, currency analyst at DailyFX.
"In the BoE's case, this is likely, at least through the first few months of 2013, but for the ECB, another rate cut could be on the horizon," he said.
ECB president Mario Draghi, in a post-meeting news conference, "continued to highlight a deteriorating economic picture, and revised projected growth rates downwards," said Paul Bregg, a forex trader at Western Union Business Solutions.
Bregg noted that the trend of improving US economic data continued on Thursday with the release of the government's report on the September trade balance, showing the deficit narrowed to $US41.5 billion ($A40.05 billion).
"This is excellent news for the US economy, as it means the initial release of third-quarter gross domestic product data of 2.0 per cent is probably too low, leading many to think that it will probably be revised upward."
The dollar rose against the Swiss currency, to 0.9454 francs from 0.9449 francs late on Wednesday.
The British pound slipped to $1.5982 from $1.5986.