The euro fell against the dollar, snapping a two-day gain, after European finance ministers failed to agree on a debt-reduction package for Greece during more than 11 hours of talks in Brussels.
The shared currency declined versus 13 of its 16 major counterparts after Luxembourg’s Finance Minister Luc Frieden said euro-area finance ministers will resume discussions next week. The yen weakened beyond 82 per dollar for the first time since April after Japan’s exports dropped for a fifth month. New Zealand’s dollar depreciated after whole-milk powder prices slid, cutting revenue from a key export.
“European policy makers raised expectations that something would happen on Greece and then they didn’t deliver,” said Ned Rumpeltin, head of Group-of-10 currency strategy at Standard Chartered Group Plc in London. “What we are seeing is European risk coming back on to the agenda. It does put downward pressure on the euro.”
The euro dropped 0.4 percent to $1.2765 at 8:33 a.m. in London after strengthening 0.6 percent during the previous two days. The shared currency was little changed at 104.71 yen. The yen fell 0.4 percent to 82.03 per dollar after depreciating to 82.11, the weakest since April 6.
“We have a series of options on the table on how to close the financing gap,” German Finance Minister Wolfgang Schaeuble told reporters in Brussels. “We discussed the issue very intensively, but since the questions are so complicated we didn’t come to a final agreement.”
A further meeting has been arranged for Nov. 26, and an aid payment for Greece held up since June remains frozen.
The euro has declined 6.5 percent during the past 12 months, the second worst performer of the 10 currencies tracked by Bloomberg Correlation-Weighted indexes. The yen dropped the most, sliding 7.5 percent, and the dollar fell 0.6 percent.
The yen weakened for a sixth day versus the dollar after Japan’s Ministry of Finance said exports fell 6.5 percent in October from a year earlier, leaving a trade deficit of 549 billion yen. The median estimate of economists surveyed by Bloomberg News was for a shortfall of 360 billion yen.
“The trade numbers have added to the case for yen weakness,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney “The struggles of the Japanese exporters are becoming increasingly clear.”
The 14-day relative strength index for the dollar against the yen was above 70 for a fourth day today, the level that some traders see as a sign an asset is about to change direction.
“Dollar-yen and cross-yen look overbought,” said Yoshitsugu Fujita, assistant vice president of global markets at Sumitomo Mitsui Trust Bank Ltd. in New York. “The weak yen trend will reverse in the not-so-distant future.”
The New Zealand currency dropped against most of its major peers after Auckland-based Fonterra Cooperative Group Ltd., the world’s biggest dairy producer, said milk powder for January delivery fell 2.5 percent.
The near-term contract for the New Zealand product declined to $3,255 a metric ton, the lowest since Oct. 2. Sales of dairy product make up about a quarter of New Zealand exports.
New Zealand’s dollar dropped 0.4 percent to 81.42 U.S. cents after sliding 0.4 percent yesterday.
Markets in the U.S. will be shut tomorrow for a holiday.