Investing.com - The euro was broadly weaker against its major counterparts on Monday, as investors took profits after last week’s rally, while caution over Greek debt swap talks weighed ahead of a European Union summit later in the day.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD tumbling 0.76% to hit 1.3118.
EU leaders were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt restructuring plan weighed on sentiment towards the single currency.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
The euro found some support after Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
The auction was a key test of Italy’s ability to raise funds on the international market, coming after a two notch downgrade of the country’s sovereign debt rating by Fitch Ratings on Friday.
But the cost of insuring Portuguese government debt against default surged to fresh euro-era highs on Monday, amid renewed fears the country may need a second international bailout.
The shared currency was also lower against the pound and the safe haven yen, with EUR/GBP shedding 0.44% to hit 0.8368 and EUR/JPY falling 0.78% to hit 100.57.
Elsewhere, the euro was slightly lower against the Swiss franc, with EUR/CHF dipping 0.06% to hit 1.2053.
The euro pushed higher against the Australian dollar but was almost unchanged against the New Zealand dollar, with EUR/AUD adding 0.27% to hit 1.2436 and EUR/NZD inching down 0.01% to hit 1.6026.
The Australian dollar came under pressure earlier after the country’s four largest banks were placed on rating watch negative by Fitch Ratings, which said the lenders continue to have a weaker funding profile than similarly-rated peers.
Fitch added that any ratings downgrades are likely to be limited to a single notch.
The euro was down against the Canadian dollar, with EUR/CAD shedding 0.43% to hit 1.3184.
Later Monday, the U.S. was to publish government data on personal spending and the consumer price index.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD tumbling 0.76% to hit 1.3118.
EU leaders were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt restructuring plan weighed on sentiment towards the single currency.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
The euro found some support after Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
The auction was a key test of Italy’s ability to raise funds on the international market, coming after a two notch downgrade of the country’s sovereign debt rating by Fitch Ratings on Friday.
But the cost of insuring Portuguese government debt against default surged to fresh euro-era highs on Monday, amid renewed fears the country may need a second international bailout.
The shared currency was also lower against the pound and the safe haven yen, with EUR/GBP shedding 0.44% to hit 0.8368 and EUR/JPY falling 0.78% to hit 100.57.
Elsewhere, the euro was slightly lower against the Swiss franc, with EUR/CHF dipping 0.06% to hit 1.2053.
The euro pushed higher against the Australian dollar but was almost unchanged against the New Zealand dollar, with EUR/AUD adding 0.27% to hit 1.2436 and EUR/NZD inching down 0.01% to hit 1.6026.
The Australian dollar came under pressure earlier after the country’s four largest banks were placed on rating watch negative by Fitch Ratings, which said the lenders continue to have a weaker funding profile than similarly-rated peers.
Fitch added that any ratings downgrades are likely to be limited to a single notch.
The euro was down against the Canadian dollar, with EUR/CAD shedding 0.43% to hit 1.3184.
Later Monday, the U.S. was to publish government data on personal spending and the consumer price index.