Euro falls to six-month low amid Paris attacks

 

The euro fell to six-and-a-half month lows against the yen on Monday, and was also weaker against the dollar and the pound after terror attacks in Paris hit risk sentiment.

EUR/JPY fell to lows of 130.66, the lowest level since April 29, and was last at 131.92.

Demand for safe haven assets was boosted after attackers killed more than 130 people in Paris on Friday, prompting retaliatory French air strikes against Islamic State in Syria.

The single currency was already under pressure from heightened expectations that the European Central Bank will enlarge its stimulus program, aimed at boosting price growth in the euro area, before the years end.

ECB President Mario Draghi was to speak at an event in Madrid later in the day.

The yen showed little reaction after data showing that Japan’s economy contracted at an annual rate of 0.8% in the three months to September, after a 1.2% contraction in the previous quarter, putting the country into a technical recession.

The weak data added to pressure on the Bank of Japan to step up monetary easing measures to shore up growth.

EUR/USD hit lows of 1.0688, not far from the seven-month lows of 1.0673 set early last week, and was last at 1.0736, off 0.34% for the day.

EUR/GBP hit low of 0.7023, the weakest level since August 7 and was last at 0.7066, little changed for the day.

The dollar moved higher against the yen, with USD/JPY rising 0.18% to 122.82.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% to 99.15.

 

 

 

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