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Euro fall against other major currencies

Dunya News

The dollar rose against the Japanese unit to 78.42 yen from 78.19 yen.

The euro weakened in Asian trade on Monday following gains late last week on the back of comments from European officials who vowed to support the embattled common currency.The euro bought $1.2293 in Tokyo morning trade against $1.2315 late Friday in New York, while it weakened to 96.42 yen from 96.63 yen.The euro faced moderate selling pressure as players are adjusting their euro-positions after it topped 1.23 last week, said Yosuke Hosokawa, head of FX sales team of Sumitomo Mitsui Trust Bank. The euro strengthened Friday on renewed optimism about the eurozone after the leaders of Germany and France on Friday joined the European Central Bank in vowing to protect the currency.ECB chief Mario Draghis comments Thursday that the central bank was ready to do whatever it takes to preserve the euro sent markets soaring and helped bring down Spains sky-high borrowing costs.Draghis comments were also reinforced by German Chancellor Angela Merkel and Italian prime minister Mario Monti who vowed in a joint statement Sunday to do everything to protect the eurozone. But Hosokawa said: Everybody knows that the euro problem has yet to end.The euro is likely to continue to fluctuate on remarks by key officials and other factors for the time being.Currency markets may see cautious trade ahead of a US Federal Reserve policy setting committee meeting on Wednesday and an ECB meeting in Frankfurt on Thursday, dealers said. Traders have been eyeing signs that the US central bank will usher in new easing measures to stimulate the worlds biggest economy.Markets were also looking to a July US jobs report due Friday, with expectations that the unemployment rate will be unchanged at 8.2 percent amid sluggish job growth
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