Euro Breaks 14-Month Low as Debt-Cutting Steps May Hurt Growth

19/05/2010 14:39
The euro headed for Moncler T-shirt on salea fourth weekly decline, breaking through the 14-month low reached against the dollar last week, on concern European nations’ debt-cutting measures will undermine economic growth. The 16-nation currency touched the least inmoncler jacket a week versus the yen before Greece submits a progress report tomorrow to the European Commission on the implementation of a deficit-reduction plan. New Zealand’s dollar was set for a second weekly loss against the greenback after government data showed retail sales rose in March at less than half the pace economists forecast. “The roots of the debt crisis in Europe have yet to moncler onlinebe solved,” said Yoh Nihei, a Tokyo-based trading group manager at Tokai Tokyo Securities Co. “People have reservations about the effectiveness of the loan package. I remain negative on the euro from a long-term perspective.” The euro traded at $1.2545 as of 11:09 a.m. in Tokyo fromMoncler T-shirt $1.2535 in New York yesterday. The currency rebounded after touching $1.2516, the lowest level since March 5, 2009. The euro was at 116.45 yen from 116.27 yen. It earlier reached 115.88 yen, the lowest since May 7. The yen was at 92.80 per dollar from 92.75. The Nikkei 225 Stock Average fell 1.6 percent and the MSCI Asia Pacific Index of moncler downregional shares slipped 1.1 percent. The Reuters/Jeffries CRB Index of 19 raw materials declined 0.4 percent yesterday. Unprecedented Loan Packagemoncler coat Europe’s currency has fallen 1.7 percent this week after the region’s policy makers unveiled an unprecedented loan package worth almost $1 trillion to combat the sovereign-debt crisis that’s threatening the currency. European Central Bank governing council member Guy Quaden said yesterday the situation facing Greece is worse than in other European nations. Greece has announced three rounds of Moncler men T-shirtdeficit-reduction measures this year, including increases in sales tax and levies on fuel, alcohol and tobacco. It last week agreed to a new package including wage and pension cuts to qualify for 110 billion euros ($138 billion) in emergency loans from the EU and the International Monetary Fund. “Investors are stillmoncler coats concerned widespread fiscal tightening could derail the already weak European economic recovery,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “A test of the euro’s 2008 low of $1.2330 looks likely in coming sessions.” Portugal, SpainMoncler Down Jackets Portugal lowered its budget-deficit goal for 2011 toMoncler outlet 4.6 percent and approved tax increases and spending cuts. The government maintained a 7.3 percent deficit target for 2010. Last year’s deficit was 9.4 percent of gross domestic product. Spain this week announced plans to reduce the deficit to 6 percent of GDP in 2011 from 11.2 percent last year, the largest two-year cut since at least 1980. Trade union UGT will stage a one-day strike of public sector workers in June, Candido Mendez, general secretary of the union, said in Madrid yesterday. “The euro grinds lower on continued pessimism regarding peripheral euro-zone countries,” analysts led by Marc Chandler, New York-based global head of currency strategy at Brown Brothers Harriman & Co., wrote in a research note dated today. “We remain negative on the euro.”moncler men moncler women moncler coat moncler vest moncler online