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Analysts says euro to go down in value

04 January 2011 08:48 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. The euro fell by the most in more than two weeks against the dollar amid concern the region’s lingering debt crisis will hamper efforts by governments and banks to raise funds.
The common currency weakened versus all but one of its 16 major counterparts before France auctions 8.5 billion euros ($11.3 billion) of debt today. The yen rose versus the euro after a Chinese report showed manufacturing expanded at a slower-than-forecast pace in December, supporting demand for safer assets. Taiwan’s dollar approached a 13-year high before a report this week that economists predict will show inflation accelerated.
The euro slid 0.8 percent to $1.3277 as of 8:22 a.m. in London from $1.3384 on Dec. 31, when it touched $1.3425, the highest level since Dec. 14. The shared currency is poised for its sharpest daily decline since Dec. 15 after gaining almost 10 percent in the second half of 2010. The yen climbed 0.5 percent to 108 per euro from 108.47.
The dollar gained 0.3 percent to 81.34 yen. Canada’s currency rose to 99.33 Canadian cents per U.S. dollar from 99.80 cents, after advancing to 99.15 cents, the strongest since May 2008. Financial markets in the U.K., Australia, New Zealand and Japan are closed today for a public holiday.
The euro had its largest loss versus the dollar in five years in 2010 as concern about the European debt crisis spurred demand for safer assets. The trading bloc added Estonia as its 17th member nation on Jan. 1. France will sell 84-day, 161-day and 343-day bills today.
The likelihood the euro area will exist in its current structure in a decade is 20 percent as governments fail to take sufficient measures to tackle economic imbalances, the Centre for Economics and Business Research said last week.