Other Currencies

The single currency incurred major losses against rupee in the open market dealings this week. Euro set off trading at Rs.107/95, recorded losses and was changing hands at Rs.104/85 showing net loss of Rs.3/10 at close of markets on Saturday. In the international market, the euro hit a weekly low of $1.3258, severely testing the strength of long-term technical support at the 200-week moving average of $1.3380. The currency was down 2.5 percent for the week, its worst against the dollar since January 25.
The euro slid 2.6 percent against the yen to 130.13 yen, while the dollar was down 0.8 percent at 97.910. The euro's decline was initially triggered by remarks from Germany's Steinbrueck earlier in the session. The finance minister said: "Germany, as a member of the EU, has a massive interest in the credibility of the Stability and Growth Pact, which, as you know, is not taken so seriously by some." "If it is not taken seriously, I am telling you, the euro will have trouble one day in terms of its own credibility and stability," he told the German Parliament. The euro was also weighed down by weaker-than-forecast euro zone industrial orders and German inflation data. The reports also fanned quantitative easing prospects at the ECB