Euro Down on Greece Stalemate

Currency declines for eighth day as Greek politicians struggle to form new government.

The euro weakened for an eighth day against the dollar as Greek politicians struggled to form a new government, fueling concern the nation will leave Europe’s currency union.

The 17-nation currency extended its run of losses to the longest since September 2008 as Spain’s 10-year bond yields climbed back above 6 percent. The pound fell for a second day against the dollar as a report showed U.K. retail sales fell the most in more than a year. The dollar and yen rose against most of their major counterparts on increased demand for haven assets. Canada’s dollar dropped to a three-month low as oil declined for a sixth day.

Euro Forecasts

The euro will probably end the year around current levels as investors buy German bonds as a haven, lending support to the currency amid outflows from weaker countries, Leuchtmann said. The median estimate of analysts’ predictions compiled by Bloomberg is for the euro to end 2012 at $1.30.

Cash Surplus

The nation will have an underlying cash surplus of A$1.54 billion ($1.55 billion) in the 12 months to June 30, 2013, Treasurer Wayne Swan said in the annual budget speech yesterday. Expenditures are forecast to decline to A$364.2 billion next year, the first drop in figures dating back to 1971.

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