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The euro fell against most of its major counterparts as concern the region’s debt crisis may spread led investors to shun the currency before a European Central Bank meeting tomorrow.
The 17-nation euro weakened to almost a decade low against the yen after a spokesman for European Union Economic and Monetary Commissioner Olli Rehn said there’s no concrete plan to recapitalize banks. Speculation about the effect of euro area bank holdings of Greek debt has helped weaken the euro 5.5 percent in the past month. The pound declined against the dollar and euro after a report showed U.K. economic growth slowed during the second quarter.
The euro depreciated 0.1 percent to 102.44 yen at 12:02 p.m. in New York, after dropping to 100.76 yen yesterday, the weakest level since June 2001. The currency declined 0.1 percent to $1.3330, after falling as much as 0.7 percent. The dollar was little changed at 76.86 yen.
The euro briefly pared its losses and the dollar strengthened against the yen after a report showed U.S. service industries expanded in September by more than forecast.
The U.K. economy expanded 0.1 percent from the first quarter, lower than the 0.2 percent previously published, the Office for National Statistics said today in London. Consumer spending plunged 0.8 percent, the most since the first quarter of 2009. The slow growth is adding pressure on the central bank to keep interest rates low. The Bank of England meets tomorrow.
The pound dropped 0.3 percent to $1.5438.
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