Euro dips as eurozone fiscal woes fester

The euro and growth-linked currencies were on slippery ground on Monday as risk appetite was subdued on the back of mounting fiscal worries in the eurozone and lingering concerns about a global tax on banks.

Traders said investors were sceptical of the Group of Seven’s reassurance on Greece and every move up by the euro EUR= was being used as a selling opportunity.

At the weekend G7 meeting of finance ministers and central bank governors, no new statement on currencies was issued, but support was rising for a levy on banks that could pay for global governments’ rescue of the financial system. [ID:nN06131269].

Last month U.S. President, Barack Obama spooked financial markets when he proposed tough reforms for the banking sector.

Reuters

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