Euro Touches Two-Year Low

Currency remains weak as region’s finance ministers meet.

The euro touched its lowest level in two years before regional finance ministers gather in Brussels today to discuss crisis-fighting measures adopted by heads of government at a summit last month.

The 17-nation currency held three days of declines before European Central Bank President Mario Draghi addresses European Union lawmakers today. The Japanese currency reached a one-month high versus the euro after Japan released May trade data and as stock declines boosted demand for haven assets. Australia’s dollar dropped after Chinese Premier Wen Jiabao said downward pressure on the economy is still “relatively large,” in remarks reported yesterday.

Euro Lows

Europe’s shared currency reached $1.1877 on June 7, 2010, the weakest since 2006, according to data compiled by Bloomberg. It last touched $1.21 on June 11, 2010, when it declined to as low as $1.2045, the data show. Support is an area on a chart where orders to buy may be clustered.

Lower Capacity

“Failure to act aggressively now will lower the capacity of the economy for many years to come,” Chicago Federal Reserve President Charles Evans said in the text of remarks today in Bangkok. “I support using our balance sheet to provide additional accommodation.”

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