Corporate foreign exchange news

Euro skids on IMF loan speculation

Friday, 10 July 2009 09:01:55 GMT

The euro has fallen against the most of its major counterparts following speculation that the International Monetary Fund (IMF) will need to extend finance to at least ten Eastern European countries.
German daily paper Handelsblatt cited anonymous sources as saying that the IMF is in talks with various Eastern European governments, including those of Bulgaria, Macedonia and Croatia.
Speaking to Bloomberg, Tsutomu Soma, a bond and currency dealer at Okasan Securities in Tokyo, said that the reports reignited fears about economic stability in the region.
"There are lingering worries over the financial health of eastern and central European countries. Investors are still risk averse, so they're likely to sell the euro and buy the yen and dollar as safe-haven currencies," he predicted.
At 08:13 BST this morning, the euro was trading down against the dollar and the yen. It is on course for the worst weekly performance against the yen seen in two months.ADNFCR-2522-ID-19259082-ADNFCR
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