Euro falls below 95 yen for first time in over a decade

The euro dipped against its main rivals on Monday as data showed the rate of economic recovery easing across the eurozone. Elsewhere, the yen rose as Japanese leaders avoided measures to tame the currency's ascent.The Australian dollar meanwhile recovered after falling sharply in early Asian trade on political uncertainty after Australia's weekend general election failed to produce a clear winner.In morning London trade, the European single currency slid to 1.2712 dollars from 1.2714 dollars in New York late on Friday.

The euro dipped under 1.22 dollars on Tuesday after Moody's slashed Greece's sovereign rating to 'junk' status, and following news of plunging German investor confidence, dealers said.The European single currency fell to 1.2190 dollars from 1.2223 dollars in New York late on Monday.Against the Japanese unit, the dollar decreased to 91.25 yen from 91.56 yen.International ratings agency Moody's cut its sovereign rating for Greece on Monday, as EU and IMF auditors began taking a hard look at the country's attempts to slash its debt.

  The official talk around the G7 statement and the G20 meeting generated a great deal of needless noise in the foreign exchange room. It is almost like a librarian yelling "Quiet".   It may be more disruptive than the initial noise.   With the meetings out of the way, we expect the official jawboning about the currency market to die down.  Of course, there is a chronic low level murmur of economic commentary that may have broad implications for foreign exchange rates.    

The yen fell back from 15-year highs against the dollar and also retreated against the euro on Wednesday as Japan intervened in currency markets for the first time since 2004.In morning trade here, the dollar rose to 85.35 yen from 83.06 yen late in New York on Tuesday. In Asian trade Wednesday, the dollar had slumped to 82.86 yen -- the lowest level since 1995 -- but reversed direction on Japan's intervention."We conducted a market intervention," Finance Minister Yoshihiko Noda told reporters, pledging further "determined steps, including intervention, when necessary."

The euro fell against the dollar on Tuesday over renewed concerns surrounding the health of European banks, dealers said.In morning trading in London, the European single currency dropped to 1.2764 dollars from 1.2883 dollars on Monday.Against the Japanese currency, the dollar slipped to 83.94 yen from 84.21 yen on Monday.The euro lost ground on doubts over Europe's "stress tests" on major banks, said Toshihiko Sakai, senior dealer at Mitsubishi UFJ Trust and Banking.

The euro dropped against the dollar on Tuesday after recent gains that were caused by relief that the bank stress tests brought no nasty surprises.In morning trading here, the shared eurozone unit dropped to 1.2977 dollars, up from 1.2990 dollars in New York late on Monday.Against the Japanese currency, the dollar strengthened to 87.36 yen from 86.86 yen on Monday.The banking-sector stress tests published last Friday found that only seven European banks were under-capitalised, and by far less than expected, to face a new financial crisis.

The euro fell against the dollar on Tuesday, weighed down by uncertainty over the Greek debt crisis heading into a crunch EU summit this week, dealers said.In morning London trade, the European single currency sank to 1.3528 dollars, down from 1.3560 dollars in late New York trade on Monday.Against the Japanese currency, the dollar rose to 90.36 yen from 90.09 yen late on Monday.

The dollar fell against the euro on Monday amid fresh worries about the US financial sector following the bankruptcy of US bank CIT Group over the weekend.In late morning London deals, the European single currency rose to 1.4772 dollars from 1.4715 dollars late on Friday.Against the Japanese currency, the dollar gained to 90.22 yen from 90.08 yen late on Friday in New York.Investors had initially bought the yen during Asian trading hours after CIT Group filed for bankruptcy protection on Sunday, reigniting jitters about the woes of the US financial sector.