The euro traded 0.4 percent from the lowest in almost three months against the greenback as Italy edged closer to a new election and amid signs the region’s recession is deepening.
The 17-nation currency declined against the majority of its major peers before data this week forecast to show the euro- area’s economy contracted last quarter. Demand for the yen was limited before Japan’s lower house holds hearings on the appointment of Haruhiko Kuroda as Bank of Japan (8301) governor today.
“What Europe is faced with is growth numbers that aren’t attractive, unemployment that’s getting worse and the Italian situation which remains unclear,” said Alex Sinton, director of institutional foreign exchange in Auckland at Australia & New Zealand Banking Group Ltd. (ANZ) “The market really hasn’t got many reasons to turn the weakness in euro around at the moment.”
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