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The euro limit its losses against the dollar Tuesday, in a market still under the influence of sharp slowdown in German growth and att ...
The euro limit its losses against the dollar Tuesday, in a market still under the influence of sharp slowdown in German growth and wait until the results of the current meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel.
Around 1600 GMT (1800 Paris), the euro bought 1.4413 dollars against 1.4440 late Monday.
The euro also limited its decline against the yen at 110.60 yen against 110.95 on Monday night.
For its part, the dollar retreated against the yen at 76.74 yen against 76.83 late Monday in New York, remaining close to its lowest level since World War II (76.25 yen) reached March 17.
Traders were a wait while the summit meeting between German Chancellor and French President, started around 1400 GMT, continued in Paris.
"They will assess the various possible measures to restore investor confidence and we must expect them to increase pressure on countries + + devices to reduce their deficits," commented David Song, an analyst at DailyFX.
"If they fail to take significant measures to curb the debt crisis in the euro area, they will struggle to reassure markets," the risk that the euro relapse, he warned, noting that the operators were scalded the German refusal to raise the issue of Eurobonds.
"It is very unlikely that today's discussions lead to anything other than insurance on the right set up in September the new provisions of the European Relief Fund (EFSF)" to help troubled countries in the euro area , adds Jane Foley.
"With such an outcome, the meeting will struggle to support the euro" and to bolster investors, she added.
A slight recovery in stock markets, following the decision of the agency Fitch to maintain its "AAA" rating on U.S. debt, however, helped to support the single European currency.
But traders were struggling to dispose of their care in a market still within the scope of concerns about the economic health of the euro area, following the announcement of an abrupt brake of German growth.
The GDP of Germany Europe's largest economy grew by only 0.1% in the second quarter compared to the first. Economic growth across the euro area has in turn slowed to 0.2% in the second quarter.
"These new signs of slower economic growth in Europe should increase pressure on Europe's political leaders to find a meaningful solution" to the crisis of sovereign debt in the euro zone, observed Valentin Marinov, an analyst at CitiFX.
For its part, the Swiss franc plunged and erased its gains against the dollar as against the euro, suffering speculation about a possible imminent intervention Swiss National Bank (SNB) to curb the high cost of the Swiss franc.
By 1600 GMT, the Swiss franc plunged sharply against the euro at 1.1410 Swiss francs, as against the dollar at 0.7912 francs.
The British pound rose against the euro at 87.76 pence, as against the greenback at 1.6420 dollar.
The ounce of gold finished at 1782.50 dollars in auctions in the morning, 1739 against the dollar on Monday night.
The Chinese currency finished at 6.3825 yuan to one dollar, against 6.3909 yuan yesterday, reaching a new high since the Chinese currency reform in 1994, according to Dow Jones Newswires.
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