Investing.com - The euro was trading close to multi-month lows against the U.S. dollar and the yen on Wednesday, as sentiment on the single currency was weighed by fears that a European Union summit later in the day would not result in any fresh measures to stem the crisis in the region.
During European late morning trade, the euro was trading close to a 21-month low against the U.S. dollar, with EUR/USD shedding 0.29% to hit 1.2646.
Sentiment on the euro was hit earlier amid fresh fears over a Greek exit from the euro area after comments from former Greek Prime Minister Lucas Papademos appeared to indicate that preparations for an exit scenario were being made.
Though Papademos later clarified the remarks, saying there are no preparations under way in Greece for a possible euro area exit, markets remained risk adverse.
Meanwhile, concerns over a division between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany, further added to the negative tone in markets, ahead of the EU summit in Brussels later in the day.
Elsewhere, the single currency edged lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8044.
In the U.K., official data showed that retail sales dropped at the sharpest rate since January 2010 in April, falling 2.3%, compared to expectations for a 0.8% decline.
Meanwhile, the minutes of the Bank of England’s May meeting showed that policymakers considered more monetary stimulus, amid concerns over the risk to the U.K. economic recovery arising from the euro zone crisis.
The euro fell to a three-month low against the yen, with EUR/JPY tumbling 1.00% to hit 100.39, but remained little changed against the Swiss franc, with EUR/CHF inching down 0.01% to hit 1.2009.
The yen found support after Bank of Japan held off on introducing any additional stimulus measures and said it was leaving its benchmark interest rate unchanged at 0.01%, following its policy meeting earlier Wednesday.
Elsewhere, the shared currency was broadly higher against the Canadian, Australian and New Zealand dollars, with EUR/CAD dipping 0.04% to hit 1.2939, EUR/AUD adding 0.33% to hit 1.2974 and EUR/NZD rising 0.36% to hit 1.6870.
Later in the day, the U.S. was to release industry data on existing home sales.
During European late morning trade, the euro was trading close to a 21-month low against the U.S. dollar, with EUR/USD shedding 0.29% to hit 1.2646.
Sentiment on the euro was hit earlier amid fresh fears over a Greek exit from the euro area after comments from former Greek Prime Minister Lucas Papademos appeared to indicate that preparations for an exit scenario were being made.
Though Papademos later clarified the remarks, saying there are no preparations under way in Greece for a possible euro area exit, markets remained risk adverse.
Meanwhile, concerns over a division between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany, further added to the negative tone in markets, ahead of the EU summit in Brussels later in the day.
Elsewhere, the single currency edged lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8044.
In the U.K., official data showed that retail sales dropped at the sharpest rate since January 2010 in April, falling 2.3%, compared to expectations for a 0.8% decline.
Meanwhile, the minutes of the Bank of England’s May meeting showed that policymakers considered more monetary stimulus, amid concerns over the risk to the U.K. economic recovery arising from the euro zone crisis.
The euro fell to a three-month low against the yen, with EUR/JPY tumbling 1.00% to hit 100.39, but remained little changed against the Swiss franc, with EUR/CHF inching down 0.01% to hit 1.2009.
The yen found support after Bank of Japan held off on introducing any additional stimulus measures and said it was leaving its benchmark interest rate unchanged at 0.01%, following its policy meeting earlier Wednesday.
Elsewhere, the shared currency was broadly higher against the Canadian, Australian and New Zealand dollars, with EUR/CAD dipping 0.04% to hit 1.2939, EUR/AUD adding 0.33% to hit 1.2974 and EUR/NZD rising 0.36% to hit 1.6870.
Later in the day, the U.S. was to release industry data on existing home sales.