Euro at 12-Year Low Versus Yen on Crisis; Dollar Drops on Fed
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The euro fell for a fourth straight week against the yen, touching the lowest level in almost 12 years, as signs the European debt crisis is worsening damped demand for the shared currency.
The dollar dropped against most major peers as investors added to bets the Federal Reserve will take new steps to stimulate economic expansion that may debase the currency. Data next week is forecast to show U.S. growth slowed. Australia’s dollar climbed as implied volatility fell to an almost five-year low and traders sought higher yields, while the euro slid even as European officials approved an aid package for Spanish banks.