SINGAPORE: The euro remained lower against the yen after a two-day decline on speculation a report today will show Spain’s economy shrank as Europe’s debt crisis deepened.
The 17-nation currency touched the weakest level in almost two years against the pound before the Spanish government holds a media briefing today to explain steps to cut its deficit. The dollar was within 0.1% of a two-month low against the Japanese currency as speculation lingered that the Federal Reserve is ready to add to monetary stimulus if the US recovery falters.
The euro dropped to 106.23 yen at 9:28 a.m. in Singapore from 106.40 at the close in New York on April 27, when it lost 0.6%. The shared currency slid to 81.31 British pence, the weakest since June 2010 and 0.2% below last week’s close. The euro fell 0.2% to $1.3235. The dollar was little changed at 80.26 yen after touching 80.22 on April 27, the weakest since Feb. 28.
Japan’s markets are shut today for a public holiday. (Bloomberg/T05/aph)