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Euro slips as air of crisis around Greece ebbs

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The euro slipped against other major currencies Friday as the air of crisis that has enveloped Europe for weeks ebbed.

[NEW YORK] The euro slipped against other major currencies Friday as the air of crisis that has enveloped Europe for weeks ebbed.

With a seven-billion-euro emergency loan for Greece approved, and the European Central Bank providing more liquidity to the country's banks, the broader sense of market risk from the euro area fell.

That allowed more focus on the fundamentals of economic growth and central bank policy.

"The dovish forward-guidance laid out by the European Central Bank may fuel a further decline in the euro-dollar rate as President Mario Draghi pledges to 'fully implement' the quantitative easing programme," said David Song, currency analyst at DailyFX.

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The euro dropped to US$1.0830, its lowest level since May 27. It also fell to 134.38 yen, while the dollar slipped to 124.09 yen.

The dollar also earned a boost from fresh data showing a pickup in US consumer prices. In what was taken as more support for an early Federal Reserve interest rate rise, the core consumer price index gained 1.8 per cent year-on-year in June.

AFP

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