The Euro inched closer to a seven-month low against the U.S. Dollar on worries that last week’s meeting between key E.U. Finance Ministers failed to produce a plan needed to solve the region’s debt crisis. The next few days will be crucial as Greece’s finances undergo inspection by the E.U., the ECB and the IMF. The powerful trio will decide whether Greece has acted fiscally responsibly and merits receiving further aid.
Meanwhile, the U.S. Dollar gained against most of its Forex exchange counterparts, except for the Yen, in anticipation of the upcoming two-day Federal Reserve meeting during which the Fed will discuss what instruments, if any, should be used to help boost the sluggish economy.
Japanese Economic Policy Minister, Motohisa Furukawa, indicated that the Bank of Japan will study the available measures to counteract the strong Yen. According to reports in the Kyodo News, their actions will be aimed at reducing the impact of the overvalued currency on local businesses.
Other news in the Forex currency market revealed that Canada’s Dollar fell the most in over one month versus the greenback as investors grew concerned that Greece may not obtain another installment of financial aid. This in turn diminished demand for high-yield assets. The online currency dipped further as crude oil declined to $85.81 per barrel on the belief that the Euro-zone’s crisis is dampening growth.
Lastly, the British Pound slipped against most other monetary units on fears the debt crisis may spill over into the U.K.