The Straits Times
Published on Oct 01, 2012

Euro slips to 3-week low as Spain fears persist


TOKYO (REUTERS) - The euro fell to a three-week low in early Asian trading on Monday, after an independent audit of Spain's banks failed to quell concerns about the country's progress towards a bailout needed to shore up its public finances.

An independent audit released on Friday showed Spain's banking sector would need 59.3 billion euros (S$94 billion) in additional funds to cope with an economic downturn but Spain said it would ask for only 40 billion euros in European aid for its banks.

Technical indicators for the euro suggest a decline, said Mr Marc Chandler, global head of FX strategy at Brown Brothers Harriman in New York.

"Over the last two weeks, we have been observing a deterioration in the tone of the major foreign currencies against the dollar," Mr Chandler said in a weekend note to clients.