MARKET HEADLINES
- Dollar slips vs yen on risk aversion, euro fragile
The dollar slipped against the safe-haven yen on Tuesday as investor risk aversion mounted on the back of a sharp drop in equities. The dollar dipped to as low as 118.65 yen from Monday's high of 120.68, moving further away from a seven-year peak of 121.86 set last month. A sharp fall in US Treasury yields also undermined the dollar versus the yen, with 10-year yields diving 14 basis points in just two sessions.
The euro last traded at $1.1961, up 0.3 percent, after dipping into the $1.1860 area on Monday, reaching depths not seen since early 2006.
- Falling Euro fans fears of a regional slowdown
The value of the euro fell to its lowest level in years Monday, prompting sharp declines in European stocks and creating uneasiness about whether the region is on the verge of a new economic and financial crisis. The continued plunge, to $1.19 - a 15 percent fall against the dollar since May and a nine-year low -came on the same day that global oil prices resumed their descent, dropping to a level not seen in more than five years. Brent crude, the global benchmark, fell to about $53 a barrel. While cheap oil can cheer consumers and energy-intensive industries, the growing worry is that the decline signals lower demand and portends a global economic slowdown.
Products from the eurozone will become more affordable for foreign buyers, even as the energy needed to make those products becomes cheaper.
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