American focus: the euro fell below $1.3100 versus dollar
The euro fell on concern European leaders won’t agree on ways to expand the region’s rescue capacities as debt-strapped nations struggle to fund their deficits.
The euro dropped after Chancellor Angela Merkel told German coalition lawmakers that the 500 billion euro cap on Europe’s planned permanent bailout fund will stay in place.
The dollar declined against the yen before the Federal Reserve holds a meeting today amid speculation officials will maintain their pledge to keep borrowing costs at almost zero.
The European Financial Stability Facility sold 1.97 billion euros of 91-day bills at an average yield of 0.222 percent, the Bundesbank said today. The sale was its first fund-raising since European leaders agree on a closer fiscal accord and additional resources to combat the region’s debt crisis at a summit in Brussels last week.