EUR/USD Closes Near Opening After Drop

The euro dropped against the US dollar amid concerns about the debt issue in the eurozone, but managed to rebound and closed near the opening. The currency rose against the Great Britain pound and weakened versus the Japanese yen.

Eurozone finance ministers have started a two-day meeting in Dublin yesterday to discuss loan extension for Ireland and Portugal. Problems of Cyprus will also be one of the discussed topics. Traders were a bit tense ahead of the meeting, fearing that the eurozone problems may hurt the market again.

The euro was heading down against the dollar, but worse-than-expected fundamental data from the United States allowed the shared European currency to close flat. The euro gained against the pound, which was weak, but retreated against the yen, which was firm against other majors as well.

EUR/USD fell from 1.3099 to 1.3036, but recovered and closed at 1.3101. EUR/JPY dropped from 130.55 to 129.23, while EUR/GBP edged up from 0.8513 to 0.8532 after falling to 0.8488.

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