Euro Depreciates Before Italian Zero-Coupon Note Auction
The euro fell before an auction of Italian zero-coupon notes and as a report showed retail sales in the nation dropped in May.
Europe’s common currency weakened against all but two of its 16 major peers. Italy will sell as much as 2.5 billion euros ($3 billion) of May 2014 securities. Retail sales fell 2 percent from a year earlier, data from the government’s statistics institute today showed. The dollar approached an almost eight- week low against the yen before a report that economists said will show orders for U.S. durable goods slowed in June.
“The overall trend for the next few months will be one of euro declines after a period of relative stability,” said Elsa Lignos, a currency strategist at Royal Bank of Canada in London. “The crisis has attached a risk premium to the euro.”
The 17-nation European currency dropped 0.3 percent to $1.2127 at 9:53 a.m. London time, declining for the sixth time in the past seven days. It fell to $1.2043 on July 24, the weakest since June 2010. The euro declined 0.3 percent to 94.78 yen. The dollar was little changed at 78.15 yen, after falling to 77.94 yen on July 23, the least since June 1.
The euro has dropped 5 percent in the past three months, according to Bloomberg Correlation-Weighted Indexes, the worst performance among 10 developed-market currencies. The yen has gained 8.9 percent, and the dollar strengthened 4.6 percent.
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