Investing.com - The euro was lower against the U.S. dollar and fell more than 1% against the yen on Tuesday, amid concerns that the euro zone is entering a recession after data confirmed that the region’s economy contracted in the last three months of 2011.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.57% to hit 1.3142.
Eurostat said that the euro zone’s gross domestic product shrank by a seasonally adjusted 0.3% in the fourth quarter, in line with expectations and unchanged from a preliminary estimate.
Annualized GDP contracted at a rate of 0.7%, also in line with expectations and unrevised from an initial estimate.
The data fuelled concerns over the outlook for global growth, coming one day after Chinese Premier Wen Jiabao said his government will target expansion of 7.5% in 2012, the lowest GDP target in eight years.
Investors also remained jittery ahead of the March 8 deadline for Greece’s private creditors to sign on to a EUR106 billion debt swap deal, a requirement for Athens to tap a recently approved EUR130 billion bailout fund.
Earlier in the day, Greek finance minister Evangelos Venizelos strongly urged private sector creditors to take part in the debt swap deal and warned that it was the best offer they would receive.
Elsewhere, the single currency fell sharply against the broadly stronger yen, with EUR/JPY tumbling 1.36% to hit 106.31.
The euro was fractionally lower against the pound and the Swiss franc, with EUR/GBP dipping 0.05% to hit 0.8325 and EUR/CHF inching down 0.02% to hit 1.2057.
The shared currency was mixed against the Australian, New Zealand and Canadian dollars, with EUR/AUD easing up 0.16% to hit 1.2405, EUR/NZD adding 0.18% to hit 1.6133 and EUR/CAD slipping 0.08% to hit 1.3136.
Earlier Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.5% in a widely expected decision, but failed to outrule the possibility of further rate cuts if global economic conditions weaken going forward.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.57% to hit 1.3142.
Eurostat said that the euro zone’s gross domestic product shrank by a seasonally adjusted 0.3% in the fourth quarter, in line with expectations and unchanged from a preliminary estimate.
Annualized GDP contracted at a rate of 0.7%, also in line with expectations and unrevised from an initial estimate.
The data fuelled concerns over the outlook for global growth, coming one day after Chinese Premier Wen Jiabao said his government will target expansion of 7.5% in 2012, the lowest GDP target in eight years.
Investors also remained jittery ahead of the March 8 deadline for Greece’s private creditors to sign on to a EUR106 billion debt swap deal, a requirement for Athens to tap a recently approved EUR130 billion bailout fund.
Earlier in the day, Greek finance minister Evangelos Venizelos strongly urged private sector creditors to take part in the debt swap deal and warned that it was the best offer they would receive.
Elsewhere, the single currency fell sharply against the broadly stronger yen, with EUR/JPY tumbling 1.36% to hit 106.31.
The euro was fractionally lower against the pound and the Swiss franc, with EUR/GBP dipping 0.05% to hit 0.8325 and EUR/CHF inching down 0.02% to hit 1.2057.
The shared currency was mixed against the Australian, New Zealand and Canadian dollars, with EUR/AUD easing up 0.16% to hit 1.2405, EUR/NZD adding 0.18% to hit 1.6133 and EUR/CAD slipping 0.08% to hit 1.3136.
Earlier Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.5% in a widely expected decision, but failed to outrule the possibility of further rate cuts if global economic conditions weaken going forward.