Euro Slumps To Two-Week Low Versus Dollar

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The euro continued to retreat versus major rivals on Tuesday as lackluster global stocks limited risk appeal. The European currency fell to a two-week low versus the dollar.

Meanwhile, in economic news, the European Central Bank said Eurozone M3 money supply growth slowed to 1.8% year-on-year in September from 2.6% in August. Economists had expected the money supply to rise 2.2%.

French housing permits decreased 18.6% in the three months to September, data released by the Housing Ministry showed today. It follows a 25.4% fall in the three months to August.

The euro fell to a two-week low of 1.4778 versus the U.S. dollar. The European currency had stretched a 14-month high to 1.5062 earlier in the week.

A Conference Board report showed that the consumer confidence index fell to 47.7 in October from a revised 53.4 in September. Economists had been expecting the index to edge up to 53.5 from the 53.1 originally reported for the previous month.

The euro continued to drift lower against the pound and reached a four day low of 0.9044. The common currency reached an 11-day high of 0.9238 earlier in the week.

Monetary Policy Committee member of the Bank of England, Adam Posen said the quantitative easing measures would not lead to unacceptably high inflation at any time horizon.

The euro fell to a six-day low against the yen of 136.14, continuing a down trend that has lasted for a few days.

The Ministry of Finance raised Japan's economic assessment for the second consecutive quarter. The ministry upgraded its evaluations for seven of the 11 regions. At the same time, it maintained the assessment of four regions from the previous quarter.

(Market News Provided by RTTNews)