Euro Declines as Sarkozy, Merkel Reject Euro Bonds; Franc Drops
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The euro weakened against the majority of its most-traded counterparts after German and French leaders rejected the issuance of bonds by the European currency region to contain its sovereign-debt crisis.
The 17-nation currency briefly pared losses after French President Nicolas Sarkozy said France and Germany are working on “ambitious” joint proposals to defend it. The Swiss franc erased gains against the dollar and euro after U.S. industrial production climbed, curbing the currency’s haven appeal. The pound rose versus the dollar after U.K. inflation accelerated.