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| Euro falls in Asia as financial fears mount |
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Time is GMT + 8 hours
Posted: 30-Sep-2008 14:50 hrs |
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| The euro has continued to fall against the dollar and the yen in Asia trade as fears about the health of European banks grew after US lawmakers rejected a financial rescue plan, dealers have said. |
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The euro fell further against the dollar in Asia Tuesday as fears grew about the health of European banks amid global turmoil after the failure of a US financial rescue plan, dealers said.. The euro slid to 1.4392 dollars from 1.4432 after US lawmakers rejected the 700-billion-dollar financial rescue plan touted by Washington as vital to avert economic collapse. The single European unit edged up to 150.24 yen from 150.13.. "Credit worries are deepening over the European financial system as well after the US bailout plan was rejected," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.. The yen retained support as investors fled riskier assets, although it gave up some gains in late trading.. The dollar firmed to 104.40 yen in Tokyo afternoon trade from 104.03 late Monday in New York, where the Japanese currency had risen sharply.. During Sydney hours Tuesday, the US currency dropped two-thirds of a yen to 103.50, the lowest since late May.. The dollar rose back into the 104 yen range as Japanese importers moved to sell the yen and stock prices trimmed heavy early losses.. Matsumoto said market players were worried that the financial crisis was worsening outside of the United States as well.. "The euro may fall further," he said. "We fear the credit worries may spread into emerging economies.". The euro could even drop below 1.4 dollars if more problems hit Europe's struggling banking sector, Takeshi Iba, a senior dealer at Brown Brothers Harriman Investment Services, told Dow Jones Newswires.. Traders were looking at the European Central Bank's policy meeting on Thursday for any signals that it is becoming more willing to mull interest rate cuts.. Belgian-Dutch banking and insurance group Fortis, the Icelandic bank Glitner and the British mortgage lender Bradford & Bingley all had to be rescued in government bailouts Monday.. Against regional Asian currencies, the dollar rose to 1,206.10 South Korean won from to 1,188.10 on Monday, to 32.26 Taiwan dollars from 32.12, and to 47.22 Philippine pesos from 46.84.. It edged down to 9,425 Indonesian rupiah from 9,445 while holding steady at 1.4307 Singapore dollars and at 34.02 Thai baht. — AFP
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