The euro is posting its worst weekly performance against the yen in two months and losing against several major currencies as more than 10 Eastern European nations will need loans to rescue their economies from the rising recession in the region.
The Eurozone currency weakened against virtually all of the 16 most traded currencies after an article posted in the German newspaper Handelsblatt affirmed that the International Monetary Fund would be already discussing aid plans for at least 10 Eastern European nations, including EU members like Bulgaria and Balkan nations like Croatia and Macedonia. The German newspaper stated that the situation is more delicate in countries like Belarus, Romania and Latvia, being the latter facing the worst recession among all European Union country members. The yen climbed this week helped by a growing risk aversion, which attracted investors to its safer profile, making the Euro to face one of its most negative weeks versus the yen since the beginning of the year.
Investors were led to sell euro priced assets this week as risk aversion is rising on markets due to concerns regarding the world recession duration. The negative speculations on Eastern Europe economic health has led traders to sell the euro this week and search for safety in currencies like the yen and the U.S. dollar.
EUR/JPY fell trading at 129.05 as of 9:40 GMT from 130.15 in the intraday. EUR/USD remained bearish being traded at 1.3911 from 1.3952.
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