May 19 (Bloomberg) -- The euro weakened for a second day to the lowest level in four years as Germany’s ban on some speculative sales to halt a slump in asset prices triggered concern Europe’s sovereign-debt crisis will worsen.
The euro slid to its least since April 2006 after Germany prohibited naked short-selling and speculating on European government bonds with credit-default swaps and the Bank of Italy allowed lenders to exclude losses on government debt. New Zealand’s dollar dropped a fourth day as central bank Governor Alan Bollard said a gradual currency depreciation was desirable.
“If you don’t feel like you can sell bonds and equities in Europe, you’re left with selling the euro to express a negative view,” said Greg Gibbs, a foreign-exchange strategist at Royal Bank of Scotland Group Plc in Sydney. The German ban “creates a view that the authorities sense bigger problems than what may appear on the surface, creating more nervousness and fear.” Read more
No comments:
Post a Comment