Euro remains weaker against major currencies

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Euro remains weaker against major currencies

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The euro fetched $1.3178 and 102.70 yen in Tokyo compared with $1.3188 and 102.72 yen in New York.

13 December,2011 11:43 am

The euro remained weaker against other major currencies in Asia on Tuesday after credit ratings agencies warned a deal by European leaders may not be enough to fix the eurozone debt crisis.The euro fetched $1.3178 and 102.70 yen in Tokyo morning trade, compared with $1.3188 and 102.72 yen in New York late Monday. The dollar was flat against the Japanese currency, at 77.90 yen.The euro will likely test the downside following a plunge late Monday, said Osao Iizuka, head of foreign exchange trading at Sumitomo Trust and Banking.The FX market has completely turned risk-off from Mondays European trade where stock markets tumbled, he said.European markets and the euro both fell Monday as Moodys Investors Services warned it would review EU nations credit ratings.The agency said the debt talks had offered few new measures and that the crisis remains in a critical and volatile stage.Fitch Ratings warned that market tension remains high and predicted a significant economic downturn in Europe, despite most EU countries agreeing to tighten budgetary coordination to tackle their fiscal woes.Iizuka said bearish sentiment on the euro would remain unless the European Central Bank abandons its reluctance to buy more eurozone sovereign debt.The euro may also lose ground if Germanys December ZEW Indicator of Economic Sentiment, due later Tuesday, registers a weak showing, said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.