Euro Trades Near 2-Week Low Before EU Summit This Week


26/06/2012 03:47 AST  Bloomberg

The euro traded within 0.3 percent of a two-week low against the dollar on concern that a European Union summit this week won’t lead to decisive measures to end the currency bloc’s debt crisis.

The 17-nation euro remained lower versus the yen before Spain and Italy sell debt today amid concern contagion from Greece is deepening and pushing up borrowing costs across the region. Demand for the U.S. currency as a refuge was supported on prospects Asian stocks will extend global losses.

“We expect a disappointing outcome from the EU leaders’ summit, so therefore we think that the euro may weaken into the week’s end,” said Richard Grace, chief currency strategist and head of international economics in Sydney at Commonwealth Bank of Australia (CBA), the nation’s biggest lender. “The U.S. dollar is going to remain quite firm.”

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