European focus: the euro retreated from session low but still is under pressure
The euro earlier dropped to its lowest level since 2001 against the yen and slid versus the dollar as speculation German Chancellor Angela Merkel is preparing for a Greek default curbed demand for the 17-nation currency.
The Dollar Index, which tracks the greenback against six U.S. trading partners, climbed to an almost seven-month high as fresh Greek austerity plans failed to calm financial-market stress in the euro area.
The yen advanced at least 1 percent versus all of its 16 major peers.
Officials in Merkel’s government are debating how to shore up German banks in the event that Greece fails to meet the budget-cutting terms of its aid package and is unable to get a bailout-loan payment, three coalition officials said on Sept. 9. Merkel is due to hold talks on the debt crisis with European Commission President Jose Manuel Barroso today.