The euro's rebound from its weakest levels since January is injeopardy as banks from UBS AG to Morgan Stanley say they see moneyflowing out of the currency.

Foreigners were net sellers of European equities in the pastfive weeks, according to Zurich-based UBS. Morgan Stanley data showthat investors have had a net short, or bearish, position in thecurrency since September. The reports add to International MonetaryFund figures showing a drop in allocations to the euro by centralbanks since a 2009 peak.

German Chancellor Angela Merkel and French President NicolasSarkozy are counting on international support as they seek toresolve the region's sovereign debt crisis, setting a deadline ofthe Nov. 3 Group of 20 summit. While the euro has gained 2.7percent since a Sept. 12 low against nine developed- nationcounterparts as measured by Bloomberg Correlation-Weighted Indexes,it's about 3.8 percent below its high for the year in May.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.