Euro Declines


The euro fell against the dollar to near the lowest level in six months as Germany's Economy Ministry said the outlook for Europe's largest economy has deteriorated even beyond the second quarter.

The dollar has risen 8.1 percent versus the euro from the record low set in July.

The euro decreased 0.3 percent to $1.4728 at 9:04 a.m. in New York, from $1.4776 yesterday, when it touched $1.4631, the lowest level since Feb. 20. It reached the record high of $1.6038 on July 15. The currency traded at 162.03 yen, compared with 162.13 yesterday, when it touched 160.87, the weakest in three months. The dollar increased 0.3 percent to 110.03 yen, from 109.72.

The euro fell 0.5 percent to C$1.5606 versus the Canadian dollar and 0.4 percent to 14.9144 Mexican pesos as Germany's economy ministry said in its monthly report that growth will remain moderate.

The country's BDB banking association said it no longer expects Europe's biggest economy to expand between 2.25 percent and 2.5 percent this year, and will change its growth forecast on Sept. 18. The German economy shrank 0.5 percent in the second quarter, the first contraction in four years.


TradingEconomics.com, Bloomberg
8/20/2008 6:34:10 AM