The euro fell a second day against the dollar as France and Belgium led
a state-backed rescue of Dexia SA, the world's biggest lender to local
governments.
The 15-nation currency also weakened against the British pound after
Belgian Prime Minister Yves Leterme said Dexia will receive about $9.2
billion to shore up its capital. The dollar rose against the yen on
speculation the U.S. Senate will salvage a $700 billion bank-bailout
plan as early as tomorrow after Congress rejected it yesterday. The yen
dropped against 14 of the 16 most active currencies as European stocks
rose, reviving purchases of higher-yielding currencies funded in Japan.
Dexia is being rescued after its shares had a record decline yesterday.
The capital infusion comes two days after Belgium, the Netherlands and
Luxembourg rescued Fortis, the largest Belgian financial-services
company, Britain took control of Bradford & Bingley Plc, the
country's biggest lender to landlords, and Germany bailed out Hypo Real
Estate Holding AG.
The Japanese currency is up 10 percent against the euro this quarter.
The dollar has fallen 1.4 percent against the yen, paring a 7 percent
gain in the previous three months. The euro is down 9.6 percent against
the dollar, its biggest quarterly decline since 1999.
EUR/USD the pair has decreased and at present tries to overcome
support in the field of a yesterday's low on $1,4300. Ossers
$1.4420/25, $1.4480/85, $1.4520. Bids $1.4310/00.
GBP/USD remained within the limits of a range $1,7980-$ 1,8120.
USD/JPY has established session low in the field of Y105,30. Offers Y105.50, Y105.60/66. Bids Y104.10.
US data starts at 1345GMT with Chicago Purchasing Managers' Index (Sep)
. At 1400GMT, the Consumer confidence for September is due.