Reuters: US Dollar Report: FOREX-Euro slumps; safe-haven yen rallies broadly

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

FOREX-Euro slumps; safe-haven yen rallies broadly May 31st 2012, 16:25 Thu May 31, 2012 12:25pm EDT * Euro falls below $1.2350 to 23-month low * An Irish 'yes' vote could provide only a brief reprieve * Weak U.S. data raise worries about Friday's jobs report By Wanfeng Zhou NEW YORK, May 31 (Reuters) - The euro tumbled to a near two-year low against the dollar and hit its weakest in more than a decade versus the yen on Thursday as worries about Spain and disappointing U.S. economic data prompted traders to shed riskier investment. The yen rallied across the board as investors sought safety ahead of U.S. jobs data for May. The dollar also benefited from safe-haven flows, rising to its strongest in 21 months against a basket of currencies. Spanish bond yields remained near record highs on fears Spain would eventually have to ask for a bailout. The European Commission's top economic official, Olli Rehn, warned that the single currency area could disintegrate without stronger crisis-fighting mechanisms and tough fiscal discipline. Adding to the negative tone was a slew of bearish U.S. data on the labor market, first-quarter economic growth and manufacturing in the U.S. Midwest, which all pointed to a slowdown in the recovery. The government is slated to release its May nonfarm payrolls report on Friday, with economists polled by Reuters looking for an increase of 150,000 jobs, up from 115,000 in April. "I think the fear is for a much weaker number. If we get a number below 100,000, that would probably sustain the negative momentum," Vassili Serebriakov, currency strategist at Wells Fargo in New York. "I'm not sure if it would necessarily accelerate it. But a number below 100,000 would be seen as the most significant sign of the U.S. economy slowing." The euro fell as low as $1.2335 on Reuters data, the weakest since the beginning of July 2010 and was last down 0.1 percent at $1.2359. It had edged higher on expectations of an Irish vote in favor of Europe's fiscal pact but investors quickly sold into rallies. Ireland began casting ballots in the only popular vote on Europe's new fiscal treaty on Thursday, with opinion polls pointing to a 'yes' vote that could ease concerns about its funding prospects. The euro zone common currency was on track for a loss of 6.6 percent in May, the worst monthly performance since September 2011. Against the yen, the euro fell 1.1 percent to 96.78 yen, after having hit 96.48 yen on Reuters data, the weakest level since December 2000. The dollar fell 1 percent to 78.30 yen, hitting a session low of 78.20, a three-and-a-half-month low. Against a basket of six currencies, the dollar index reached a high of 83.215, the highest since early September 2010. It was last off 0.1 percent at 82.972 and looked set to close above its 100-month average, at 81.823, for the first time in almost 10 years. A break of the 100-month average has been a good indicator of a long-term trend change, having produced four successful signals in the past 30 years. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions