(RTTNews) – The euro experienced weakness against lower-yielding major currencies on Monday as declining global stocks fueled risk aversion.
The common currency touched its lowest mark in about two weeks against the dollar and yen. Against the pound, the euro was little-changed after giving back early gains.
European Commission President Jose Manuel Barroso reportedly said the European Union is not ready to have a single currency representation at international financial institutions.
Also on Monday, results of the latest Sentix survey revealed that the headline indicator for Eurozone unexpectedly fell to minus 31.3 in July from minus 27 in June. Economists were expecting the index to rise to minus 25.
The euro fell to a 13-day low of 1.3876 against the dollar before bouncing back near 1.3925 in mid-day trading. The European currency has been trending lower throughout the young month.
The Institute for Supply Management said its index of activity in the service sector rose to 47.0 in June from 44.0 in May, although a reading below 50 indicates a contraction. Economists had been expecting the index to come in at 46.0.
The euro fell to as low as 131.72 against the yen, its lowest mark since June 22, before later rebounding slightly. If the common currency falls below 131.41, it will reach its lowest level in nearly seven weeks.
The Bank of Japan upgraded its regional economic assessment for the first time in three years. The central bank said economic conditions in the Japanese economy continued to be severe, but they started to stop worsening amid the slowing pace of deterioration.
Meanwhile, the euro climbed to a four-week high of 0.8645 against the sterling before giving back its gains for the day and moving near 0.8690 in the early afternoon.
