By: Barbara Zigah
The common currency Euro slipped against the U.S. Dollar in Asian trading today following the defeat in Germany of Angela Merkel’s Christian Democrat party in regional elections. According to political analysts, the party lost their stronghold in the key Baden-Wuerttemberg region, and that event is likely to limit the Chancellor’s ability to get controversial legislation passed. As reported at 1:54 p.m. (JST) in Tokyo, the Euro was trading down against the greenback at $1.4046, off from Friday’s late New York trading of $1.4065; earlier in today’s session it had struck a low of $1.4020. According to one currency strategist, the only thing supporting the Euro is strong investor belief that a rate hike by the ECB is likely forthcoming
Also in Asia, the U.S. Dollar was higher against the Japanese Yen, supported by commentary from one Federal Reserve board member who noted that the U.S. central bank is ready to withdraw from the current ultra loose monetary policy if that is what it would take to keep inflationary pressures at bay. The U.S. Dollar was trading higher against the Yen at 81.58 Yen, a slight gain from late Friday trading in New York of 81.43 Yen.