Euro continues weakening over U.S. $ and yen

by: M. Yunan Hilmi

SINGAPORE (Bloomberg): Euro weakening U.S. dollar over the yen and performance reports that European manufacturing sector is estimated to worsen the recession in the 16 countries in the region.

Euro, the currency of the three main terlemah during 2008, defeated by the European Central Bank estimates will lower interest rates to encourage economic growth. Central banks lower interest rate of 1.75% basis points in October sejakn be 2.50%. This decrease is the first since June 2003.

"There are many more dots weakness in Europe in the future. Likelihood of central bank interest rate back down 1% in March," said Sean Callow, senior foreign exchange analyst Westpac Banking Corp. in Sydney.

Euro weakened to U.S. $ 1.4010 at 9:42 am in Tokyo from U.S. $ 1.4045 closing of New York yesterday. Euro anjlok 4.2% during 2008. The currency also weakened this combination to be 127.14 yen from 127.41 yen, after a 28% depreciation year ago. Callow estimate can be depressed euro to U.S. $ 1.20 during the semester I/2009.

U.S. dollars are relatively stable at 90.73 yen. However, throughout 2008 the U.S. dollar weakened 19%, the largest since 1987.

In December of European manufacturing index 34.5, unchanged from the initial estimate and the lowest since 1998. The index is based on a survey of purchasing by Markit Economics. Numbers below 50 indicate contraction or the decline. The report will dilansir at 9 a.m. in London this week.

Other surveys show ECB will lower the interest rate to be 1.5% in the second quarter of this year. (Yn)
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