Euro loses value as oil threatens inflation
by Brian Turner
The euro lost value against the US dollar, the yen, and sterling on Monday after a European Union summit that could not agree on a budget.
It was additionally affected on continuing rumors that the European Central Bank is thinking about cutting interest rates in the eurozone.
However, analysts say that the fact that the euro continues to decline is making it less likely that the ECB would reduce rates, especially now as crude oil price increases threaten inflation.
The euro fell 1.2 percent to $1.2136 in relation to the US dollar, was down 0.4 percent against the yen to ¥132.81, and declined 0.8 percent to £0.6656 in relation to sterling.
Meanwhile, the US dollar advanced 0.6 percent to ¥109.40 in relation to the yen. It also rose against the Swiss franc, gaining 0.8 percent to SFr1.2724.
The Australian dollar held steady in relation to the US dollar at $9.7762. The New Zealand dollar and sterling did likewise, sitting at $0.7152 and $1.8232 respectively against the US dollar.
Sterling was up in relation to the yen and the Swiss franc, rising 0.4 percent to ¥199.41 in relation to the yen and 0.6 percent against the Swiss franc to SFr2.3197.
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