By: Barbara Zigah
Ongoing doubts over the Eurozone’s policymakers’ ability to create a plan which will help to stop the Eurozone crisis are putting significant pressure on the common currency, with the Euro slipping against the U.S. Dollar in Asian trading. As reported at 1:40 p.m. (JST) in Tokyo, the Euro was trading nearly 0.3% lower against the greenback, at $1.3722, holding within the week’s tight trading band. The Euro also slipped against the safe haven Japanese Yen, dropping 0.3% to 105.35 Japanese Yen.
Yesterday, Nicolas Sarkozy, the president of France, told reporters that current discussions have stalled as France and Germany remain at odds about how best to increase the emergency bailout fund’s firepower. In the near term, investors will refocus their attention on two upcoming debt auctions to be held in France and Spain later today, with markets anxious to see if the yields between the debt instruments and German bunds widen yet again. Earlier in the week, Moody’s credit rating agency warned that they would consider giving France’s outlook a negative rating.
The Australian Dollar also slipped in Asian trading, as risk aversion held sway in the market; the Aussie slipped against both the U.S. Dollar and the Japanese yen, dropping 0.3% against the U.S. Dollar to trade at $1.0196 and 0.4% against the Yen to trade at 78.24 Yen.