Euro Weakens to 4-Month Low on Cypriot Fallout; Yen Rises
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The euro fell to a four-month low versus the dollar as the Cyprus bailout plan added to concern about the safety of the region’s bond holdings and deposits.
The 17-nation currency pared losses as Dutch Finance Minister Jeroen Dijsselbloem said Cyprus is a specific case, contradicting a Reuters report that Dijsselbloem called the bailout a model for Europe. The bailout plan will see Cyprus Popular Bank Plc wound down, wiping out bondholders, and will impose losses on some depositors at Bank of Cyprus Plc. The yen erased losses before central bank Governor Haruhiko Kuroda speaks to lawmakers tomorrow.