Euro Slides to Weakest Level in Two Years on Economic Outlook


14/07/2012 08:22 AST  Bloomberg

The euro dropped to the lowest weekly level versus the dollar in more than two years as investors sought safety amid concern Europe’s sovereign-debt turmoil is worsening.

The yen rose for a third week against the greenback, the longest winning stretch in almost a year. The euro pared its loss versus the dollar yesterday amid speculation global central banks will take further action to sustain faltering economic growth. Federal Reserve Chairman Ben S. Bernanke will testify to Congress next week about the U.S. outlook.

“For the majority of the week the theme was largely risk- off,” Omer Esiner, chief market analyst in Washington at the currency brokerage Commonwealth Foreign Exchange Inc., said in a telephone interview yesterday. “There were questions and doubts about the timely implementation of any plan to help arrest the debt crisis.”

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