Investing.com – The euro was down against the U.S. dollar on Tuesday, tumbling to a 7-day low amid ongoing concerns about the debt problems of some peripheral euro zone nations, especially Ireland.
EUR/USD hit 1.3838 during late Asian trade, the pair’s lowest since October 29; the pair subsequently consolidated at 1.3866, shedding 0.38%.
The pair was likely to find support at 1.3763, the low of October 28 and resistance at 1.4089, Monday’s high.
On Monday, European Union Commissioner for Economic and Monetary Affairs Olli Rehn arrived in Dublin to discuss the country's plans for fiscal austerity.
Mr. Rehn stressed the need for cross-party consensus on the economic challenges facing Ireland after the country's main opposition party said on Sunday that it would not support next month's budget, containing EUR 15 billion in spending cuts aimed at reducing the country’s budget deficit.
Mr. Rehn said Ireland's fiscal adjustment will take time and determination, but that the country hadn't requested any financial backstops from the EU.
The euro was also down against the pound, with EUR/GBP shedding 0.19% to hit 0.8607.
Also Monday, European Central Bank President Jean-Claude Trichet dismissed suggestions that the world's major powers were deliberately weakening their currencies.
Speaking after a regular meeting with other central bank heads, Mr. Trichet said that "Absolutely no participants mentioned that they were pursuing any kind of weak currency policies."
EUR/USD hit 1.3838 during late Asian trade, the pair’s lowest since October 29; the pair subsequently consolidated at 1.3866, shedding 0.38%.
The pair was likely to find support at 1.3763, the low of October 28 and resistance at 1.4089, Monday’s high.
On Monday, European Union Commissioner for Economic and Monetary Affairs Olli Rehn arrived in Dublin to discuss the country's plans for fiscal austerity.
Mr. Rehn stressed the need for cross-party consensus on the economic challenges facing Ireland after the country's main opposition party said on Sunday that it would not support next month's budget, containing EUR 15 billion in spending cuts aimed at reducing the country’s budget deficit.
Mr. Rehn said Ireland's fiscal adjustment will take time and determination, but that the country hadn't requested any financial backstops from the EU.
The euro was also down against the pound, with EUR/GBP shedding 0.19% to hit 0.8607.
Also Monday, European Central Bank President Jean-Claude Trichet dismissed suggestions that the world's major powers were deliberately weakening their currencies.
Speaking after a regular meeting with other central bank heads, Mr. Trichet said that "Absolutely no participants mentioned that they were pursuing any kind of weak currency policies."