Dhaka, Bangladesh (BBN) – Ratings downgrades for Italy and Spain knocked the wind out of the Euro (EUR) last week and EUR slipped 0.3 percent to USD 1.3388 on Friday but was up slightly for the week for the first time in three weeks.
On Monday the EUR rose three cents to a peak of USD 1.3698, its biggest daily gain versus the USD in 15 months sparked by a Franco-German pledge to shore up banks to settle the Greek crisis and accelerate growth in the euro zone, a weekly review report said.
The EUR also rose to 104.99 Japanese Yen (JPY), the highest in three weeks, showing a rise of 1.65 percent, before steadying at JPY 104.46. It traded little changed against the USD on Tuesday, surrendering early gains after Slovak Parliament rejected the plan to expand the euro zone rescue fund.
The EUR rallied on Wednesday to a near one-month high against the USD on hopes Slovakia would eventually approve an expansion of the euro zone rescue fund critical to containing the region’s debt crisis. It last rose 1.1 percent to USD 1.3808, after touching a high of USD 1.38340, its strongest since Sept 16. EUR took a breather dipping slightly on early traded is Asia on Thursday as short covering rallied with a hope of EUR eking out more gains ahead of a European Union summit next week.
Against the JPY, the EUR dipped 0.3 percent to 106.25, also retreating from a one-month high near 107.03 JPY the previous day.
The USD ended last week at 76.85 JPY and up against the Swiss Franc (CHF) at 0.9258. On Monday USD was flat against a basket of currencies and remained stuck at 76.65 Yen only to rise by 0.1 percent against a basket of currencies on Tuesday.
On Wednesday, USD rose 0.8 percent to 77.27 Yen, having hit a one-month high of 77.489. Against a basket of currencies, the dollar index fell to a three-week low of 76.796 Yen and was last down 0.9 percent.
BBN/SSR/AD-14Oct11-8:33 pm (BST)