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.
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.
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.