Euro Declines as Stress Tests Fail to Ease Banking Risk Concern

The euro declined versus a majority of the most-traded currencies this week as results showing that only seven banks flunked European Union-wide stress tests failed to ease concern lenders may not have sufficient capital.

“This doesn’t really do a lot to alleviate concerns about transparency,” said Win Thin, a senior currency strategist at Brown Brothers Harriman & Co. in New York. “It looks like the stress tests weren’t that stressful.”