Investing.com - The euro extended losses against its major counterparts on Thursday, falling to multi-month lows against the U.S. dollar and the pound and hitting a fresh decade low against the yen following disappointing results at a closely watched auction of French government debt.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD tumbling 0.75% to hit 1.2843.
Concerns over the two-year old euro zone financial crisis intensified after an auction of French government encountered lackluster investor demand.
France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down sharply from a bid-to-cover ratio of 3.1 in December.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s amid concerns over the handling of the financial crisis in the euro zone.
Concerns over the health of the European banking sector also weighed on market sentiment, boosting demand for safe haven assets.
The euro was hovering close to a 16-month trough against the pound, with EUR/GBP shedding 0.31% to hit 0.8259.
In the U.K., a report earlier showed that service sector activity in the U.K. unexpectedly accelerated to a five-month high in December, easing concerns that growth in the U.K. economy is faltering.
Against the yen, the single currency dropped 0.59% to hit 98.71, the pair’s lowest level since December 2000.
Earlier in the day, a senior Japanese government official said Japan will continue to closely monitor moves in the foreign exchange market and act appropriately after the U.S. criticized last years currency market interventions by Japan.
Elsewhere, the euro remained steady against the Swiss franc, with EUR/CHF dipping 0.04% to hit 1.2181.
The euro edged higher against the Australian dollar, but remained within striking distance of Wednesday’s all time low of 1.2476, with EUR/AUD adding 0.33% to hit 1.2525.
In Australia earlier, official data showed that the country’s trade surplus contracted unexpectedly in December, declining to a seasonally adjusted AUD1.38 billion, disappointing expectations for a surplus of AUD1.66B.
The euro was mixed against the Canadian and New Zealand dollars, with EUR/CAD shedding 0.22% to trade at 1.3075 and EUR/NZD inching up 0.03% to hit 1.6436.
Later Thursday, the U.S. was to release the ADP report on private sector employment as well as data on initial jobless claims and service sector activity.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD tumbling 0.75% to hit 1.2843.
Concerns over the two-year old euro zone financial crisis intensified after an auction of French government encountered lackluster investor demand.
France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down sharply from a bid-to-cover ratio of 3.1 in December.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s amid concerns over the handling of the financial crisis in the euro zone.
Concerns over the health of the European banking sector also weighed on market sentiment, boosting demand for safe haven assets.
The euro was hovering close to a 16-month trough against the pound, with EUR/GBP shedding 0.31% to hit 0.8259.
In the U.K., a report earlier showed that service sector activity in the U.K. unexpectedly accelerated to a five-month high in December, easing concerns that growth in the U.K. economy is faltering.
Against the yen, the single currency dropped 0.59% to hit 98.71, the pair’s lowest level since December 2000.
Earlier in the day, a senior Japanese government official said Japan will continue to closely monitor moves in the foreign exchange market and act appropriately after the U.S. criticized last years currency market interventions by Japan.
Elsewhere, the euro remained steady against the Swiss franc, with EUR/CHF dipping 0.04% to hit 1.2181.
The euro edged higher against the Australian dollar, but remained within striking distance of Wednesday’s all time low of 1.2476, with EUR/AUD adding 0.33% to hit 1.2525.
In Australia earlier, official data showed that the country’s trade surplus contracted unexpectedly in December, declining to a seasonally adjusted AUD1.38 billion, disappointing expectations for a surplus of AUD1.66B.
The euro was mixed against the Canadian and New Zealand dollars, with EUR/CAD shedding 0.22% to trade at 1.3075 and EUR/NZD inching up 0.03% to hit 1.6436.
Later Thursday, the U.S. was to release the ADP report on private sector employment as well as data on initial jobless claims and service sector activity.