Euro Falls As Eurozone Finance Ministers Delay Greece Bailout

01:13, 13th November 2012

(RTTNews) - The euro lost ground against other major currencies in Asia on Tuesday as sentiment worsened after the Eurozone finance minsters struggled to reach final agreement on granting next installment of bailout funds to Greece.

At the meeting in Brussels, Eurogroup head Jean-Claude Juncker said the final decision may be reached next week, when the group meets again to lay down final details for Greece to get 31 billion euros financial aid.

The meeting decided to give a two-year extension to the debt laden country to meet its austerity requirements. However, the extension will add 32.6 billion euros to Greek bailout, the meeting noted.

The euro was already weighed by underlying Eurozone debt problems, thus eroding investor confidence and applying selling pressure from past month.

The euro is now trading at 1.2048 against the Swiss franc, its lowest level since September 12. On the downside, 1.20 is seen as the next target level for the euro. The euro-franc pair ended Monday's deals at 1.2054.

Against the pound, the euro fell to 0.7991, down from yesterday's close of 0.8007. If the euro declines further, it may break 0.79 level.

The house price balance in the U.K. reached the highest level in more than two years in October and buyer enquiries picked up on positive sentiment stemming from credit availability, a closely watched survey revealed.

The house price gauge rose to -7 from -14 in September, the Royal Institution of Chartered Surveyors said. Nonetheless, a negative reading suggests that more respondents said prices declined than gained.

The euro lost 0.6 percent against the yen to hit a 4-day low of 100.45 from Monday's closing value of 101.05. The next support level for the euro is seen at 100.00.

Japan's industrial production declined 4.1 percent in September from a month ago, in line with preliminary estimate, final data published by the Ministry of Economy, Trade and Industry showed today.

Shipments dropped only 4.3 percent compared to the preliminary estimate of 4.4 percent decline. At the same time, inventory slipped 0.9 percent, matching the initial estimate.

Against the U.S. dollar, the euro fell to more than 2-month low of 1.2675, depreciating 0.3 percent compared to yesterday's close of 1.2711. On the downside, the euro-greenback pair may face 1.26 level.

The euro that closed yesterday's deals at 1.2712 against the loonie hit 1.2679, its lowest level since November 7. On the downside, the euro is likely to break 1.265 level.

The euro slipped to a 6-day low of 1.5528 against the kiwi, compared to Monday's close of 1.5552. The euro may seek next support level at 1.55.

In the European session, Swiss producer & import prices, U.K. CPI and PPI - all for October, as well as German ZEW economic sentiment index for November are due for release.

The U.S. monthly budgetary statement is expected in the New York session.