The euro fell against the dollar and extended a weekly loss versus the yen after a German government report showed Europe’s largest economy shrank the most in at least four decades during the last quarter.
The euro also headed for its first weekly decline in a month versus the dollar before a report that may show the 16- nation economy shrank at the fastest pace in at least 13 years. New Zealand’s dollar weakened against all 16 of the most-traded currencies as the country’s retail sales dropped almost twice as fast as economists forecast. South Korea’s won rose as overseas funds bought more local stocks than they sold.
“It’s a really bad piece of data, and it’s going to get worse because the European Central Bank has only come up with half-hearted measures” to revive growth, said Geoffrey Yu, a strategist in London at UBS AG, the world’s second-largest currency trader. “This is going to be bad for the euro.”
The euro fell to $1.3597 as of 8:38 a.m. in London from $1.3639 in New York yesterday, bringing its decline this week to 0.3 percent. The common currency slid to 129.37 yen from 130.67 yen, for a 3.6 percent decline this week, the first in four. The dollar dropped to 95.15 yen, from 95.80 yen.
New Zealand’s dollar fell 5.7 percent against the yen this week, the most since the week ending Jan. 16. It dropped to 56.07 yen today from 57.16 yen. The kiwi also slumped 1.3 percent to 58.93 U.S. cents, extending its decline to 2.4 percent this week. South Korea’s won advanced to 1,257.00 per dollar from 1,266.90 yesterday, paring its weekly loss to 0.8 percent.
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