Investing.com – The broadly weaker euro was down against the yen on Monday, tumbling to a 3-day low, ahead of a meeting of European finance ministers to discuss their response to the euro zone sovereign debt crisis.
EUR/JPY hit 109.67 during European afternoon trade, the pair’s lowest since December 1; the pair subsequently consolidated at 109.93, tumbling 0.72%.
The pair was likely to find support at 108.39, the low of December 1 and resistance at 111.18, the high of December 2.
Later in the day, euro zone finance ministers were due to meet in Brussels to discuss the outlook for Portugal, which was struggling to quell speculation it will need a bailout.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of its rescue fund and the European Central Bank should boost its bond buying markedly.
The euro was also sharply lower against the U.S. dollar, with EUR/USD plunging 1.08% to hit 1.3268.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.
EUR/JPY hit 109.67 during European afternoon trade, the pair’s lowest since December 1; the pair subsequently consolidated at 109.93, tumbling 0.72%.
The pair was likely to find support at 108.39, the low of December 1 and resistance at 111.18, the high of December 2.
Later in the day, euro zone finance ministers were due to meet in Brussels to discuss the outlook for Portugal, which was struggling to quell speculation it will need a bailout.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of its rescue fund and the European Central Bank should boost its bond buying markedly.
The euro was also sharply lower against the U.S. dollar, with EUR/USD plunging 1.08% to hit 1.3268.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.