Investing.com - The euro fell against most of its major counterparts on Wednesday, nearing a 16-month trough against the U.S. dollar and a more than decade low against the yen as investors shunned the currency amid concerns over the euro zone’s sovereign debt crisis.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.61% to hit 1.2698.
Sentiment on the single currency soured as investors looked to the European Central Bank’s policy setting meeting on Thursday, as well as government debt auctions by troubled euro zone states, Spain and Italy later in the week.
The yield on Italian and Spanish government bonds eased earlier, with the yield on 10-year Italian bonds at 7.03%, while the yield on Spanish 10-year bonds was at 5.44%.
The ECB was expected to keep rates unchanged at 1% at its meeting on Thursday, and was expected to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
The euro ticked higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8256.
In the U.K., official data showed that the goods trade deficit expanded more-than-expected in November, as exports declined and imports of oil and chemicals rose to record highs.
The single currency re-approached Monday’s 11-year low against the safe haven yen, with EUR/JPY dropping 0.34% to hit 97.84.
Earlier Wednesday, Bank of Japan Governor Masaaki Shirakawa said governments must implement “necessary” reforms to aid the global economy, adding that the yen’s strength will “hurt the Japanese economy in the short term,” after the central bank lowered its economic assessment for a second straight month in December.
Elsewhere, the euro was steady against the Swiss franc, with EUR/CHF inching up 0.06% to hit 1.2134.
The euro fell to fresh record lows against the broadly stronger Australian and New Zealand dollars, with EUR/AUD shedding 0.27% to hit 1.2356 and EUR/NZD falling 0.45% to hit 1.6007.
The Aussie and the kiwi remained supported by the view that China intends to loosen monetary policy, in an attempt to bolster growth in the world’s second largest economy.
The euro was also lower against the Canadian dollar, with EUR/CAD shedding 0.41% to hit 1.2919.
Later Wednesday, German Chancellor Angela Merkel was to meet with Italian Prime Minister Mario Monti, to discuss plans to shore up Italy’s finances ahead of a European Union summit on January 30.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.61% to hit 1.2698.
Sentiment on the single currency soured as investors looked to the European Central Bank’s policy setting meeting on Thursday, as well as government debt auctions by troubled euro zone states, Spain and Italy later in the week.
The yield on Italian and Spanish government bonds eased earlier, with the yield on 10-year Italian bonds at 7.03%, while the yield on Spanish 10-year bonds was at 5.44%.
The ECB was expected to keep rates unchanged at 1% at its meeting on Thursday, and was expected to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
The euro ticked higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8256.
In the U.K., official data showed that the goods trade deficit expanded more-than-expected in November, as exports declined and imports of oil and chemicals rose to record highs.
The single currency re-approached Monday’s 11-year low against the safe haven yen, with EUR/JPY dropping 0.34% to hit 97.84.
Earlier Wednesday, Bank of Japan Governor Masaaki Shirakawa said governments must implement “necessary” reforms to aid the global economy, adding that the yen’s strength will “hurt the Japanese economy in the short term,” after the central bank lowered its economic assessment for a second straight month in December.
Elsewhere, the euro was steady against the Swiss franc, with EUR/CHF inching up 0.06% to hit 1.2134.
The euro fell to fresh record lows against the broadly stronger Australian and New Zealand dollars, with EUR/AUD shedding 0.27% to hit 1.2356 and EUR/NZD falling 0.45% to hit 1.6007.
The Aussie and the kiwi remained supported by the view that China intends to loosen monetary policy, in an attempt to bolster growth in the world’s second largest economy.
The euro was also lower against the Canadian dollar, with EUR/CAD shedding 0.41% to hit 1.2919.
Later Wednesday, German Chancellor Angela Merkel was to meet with Italian Prime Minister Mario Monti, to discuss plans to shore up Italy’s finances ahead of a European Union summit on January 30.