European session:The euro dropped
The euro dropped against the dollar and yen for a second day after European officials failed to offer a plan to halt the region’s debt crisis and as Greece struggles to avoid default.
The 17-nation currency slid against most of its 16 major peers before European Union and International Monetary Fund officials speak today with Greek Finance Minister Evangelos Venizelos to judge whether his government is eligible for its next aid payment.
The U.S. currency rose as Asian stocks fell, spurring demand for the safest assets.
The Australian dollar dropped against the greenback before the Reserve Bank is due to release tomorrow the minutes of this month’s policy meeting.
The dollar rallied before the Federal Open Market Committee gathers tomorrow for a two-day meeting.
The committee may decide to replace some of the short-term Treasury securities in the Federal Reserve’s $1.65 trillion portfolio with long-term debt in a bid to lower rates on everything from mortgages to car loans, according to economists at Wells Fargo & Co., Barclays Capital Inc. and Goldman Sachs Group Inc. Some analysts dub the maneuver “Operation Twist” because it would bend long-term yields lower.
Australia’s dollar snapped two days of gains versus the greenback on concern the RBA will signal interest-rate cuts in its September meeting minutes to be released tomorrow, curbing demand for the South Pacific nation’s currency.
EUR/USD: holds $1.3630-$ 1.3700.
GBP/USD: the pair restored from morning low in area $1.5750. But returned back to $1.5700 area later. USD/JPY: the pair decreased in Y76.60 area.