Euro Falls on Concern Greek Talks Will Stall; Yen Approaches Postwar High

The euro weakened versus the yen and the dollar as Greece struggled to reach an agreement with bondholders on cutting the nation’s debt burden, stoking concern Europe’s crisis will deepen.

The common currency fell against 14 of its 16 major counterparts as Spanish bonds declined after the nation sold debt today.

The yen rose to within 1 percent of a postwar high against the dollar, prompting speculation Japan will intervene to limit the currency’s gains.

The euro briefly erased losses after China’s Premier Wen Jiabao said his nation supports European efforts to stabilize the 17-nation currency.

“There’s a growing fatigue in the market over the Greek deal,” said Neil Jones, head of European hedge-fund sales at Mizuho Corporate Bank Ltd. in London.

“For weeks we’ve been hearing a deal is imminent and the market went risk-on yesterday in expectation there was going to be an agreement.

This has failed to materialize and I sense the market is becoming a bit weary with the euro.”

From: Bloomberg