By: Barbara Zigah
As investors square their holdings in advance of the month’s end, the common currency Euro slipped against the greenback, trimming gains made in yesterday’s trading session. Yesterday, the euro rose more than 1.5% versus the U.S. Dollar following the reaffirmation from the Chinese government that it is committed to diversifying its holdings in foreign currency away from the U.S. currency. As reported in Asia today, the Euro was trading at $1.2335, a loss of .3%; yesterday, it neared $1.2400. One trader in a Tokyo securities firm suggested that $1.2400 is likely the highest it will go. This month, the Euro has lost more than 7% of its value versus the U.S. Dollar and is on track for its 6th consecutive monthly decline.
The Euro also slipped against the Japanese Yen, falling .1% to trade at 112.54 Yen; yesterday, the Euro rose nearly 2.7%, the biggest single day increase in more than a year.
Continuing worries over the Euro-zone’s financial sector bailouts is also pressuring the Euro. Yesterday in Spain, a parliamentary vote approved, by a single vote, a multi-billion Euro rescue plan, which calls for austerity measures that some analysts worry, will trigger a labor strike by Spanish unions.