Euro Falls against Dollar


The euro fell for the first time in three days against the dollar on speculation losses at the region's biggest banks will spread amid the credit crisis.

The euro fell versus 13 of the 16 most-traded currencies after Oppenheimer & Co. said UBS AG, Europe's largest bank by assets, will probably report a loss this quarter. European Central Bank policy maker Guy Quaden said in an interview there are ``shockwaves'' from the U.S. credit squeeze, the Wall Street Journal reported today.

The euro fell to $1.5817 at 7:21 a.m. in New York, from $1.5845 late yesterday, when it rose 1.3 percent. It was little changed against the yen, at 157.06 yen, after trading as low as 155.89 earlier, its largest loss since March 20. The dollar was at 99.30 yen, from 99.20, and rose to 0.9920 Swiss franc, from 0.9888 yesterday.

The euro also declined as technical charts indicated it has risen too quickly after posting its biggest two-day gain since Jan. 4-5, 2001. The single currency's 14-day stochastic oscillator was 80.82, according to data compiled by Bloomberg. A level above 80 suggests the currency has risen too fast.

Volatility in currency markets is ``clearly a negative risk,'' the Wall Street Journal cited Quaden as saying in an interview. He also said no large European banks are close to collapse, according to the report.

Against the pound, the euro rose to 78.38 pence from 78.90. The euro declined to 9.3958 Swedish kronor from 9.4267.


TradingEconomics.com, Bloomberg
3/27/2008 6:29:03 AM