The euro hit a new low against the yen and approached its record depths against the dollar here Wednesday, depressed by German Chancellor Gerhard Schroeder's apparent satisfaction with its weakness.
"Chancellor Schroeder said he did not care about a low euro, which left investors feeling that authorities were not concerned about the euro's level and causing it to decline further," Fuji Bank dealer Hideyuki Tsukamoto said.
The euro traded at $0.8877 around 2:00 p.m. (0500 GMT), down from $0.8902 in New York Tuesday afternoon and $0.8942 in Tokyo late Tuesday.
The euro fell to a record low of $0.8845 last Thursday despite an interest rate hike by the European Central Bank.
Against the yen, the euro traded at 93.91, off new lows of 93.64 here earlier and 93.84 in New York Tuesday. The rate was well down from 95.38 in Tokyo late Tuesday.
The euro has slid further since Monday, when Schroeder suggested a weak euro was good for German exports.
"Some investors want to test even lower euro levels to see whether monetary authorities will intervene in the market," Tsukamoto said.
A meeting by euro-zone finance ministers on Friday, which is expected to issue a formal statement on the beleaguered currency, could help arrest the slide.
"Any expression of concern may help lift the unit," research firm IDEAglobal.com said in Singapore.
The dollar traded at 105.86-88 yen at 2:00 p.m., slightly up from 105.80 yen in New York Tuesday afternoon, but down from 106.32 yen in Tokyo late Tuesday.
"Since the euro hit its record low against the yen, this trend boosted the yen against the dollar as well," Tsukamoto said. — (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
