European Central Bank Loans
December 21, 2011 by staff
European Central Bank Loans, The euro fell against most of its major peers amid concern that European Central Bank measures to support its banking sector won’t be enough to arrest region’s worsening sovereign-debt crisis.
The 17-nation currency erased an earlier advance as the ECB said it had awarded 489 billion euros ($637 billion) in 1,134- day loans to banks, more than the 293 billion euros forecast by economists, as investors bet the euro-region debt crisis is far from done. The euro-area economy will probably fail to grow next year after expanding 1.6 percent in 2011, while the U.S. likely will accelerate to 2.1 percent from 1.8 percent, according to Bloomberg surveys of economists.
“We’re starting to see more headwinds start up for the euro,” said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. “Whether it’s been the latest summit hasn’t worked, whether it’s been the growth picture in Europe versus the U.S., people are finally noticing that it’s lagging.”
The euro fell 0.3 percent to $1.3047 as of 10:59 a.m. New York time, after climbing as much as 0.9 percent after the ECB announcement. Europe’s shared currency declined 0.2 percent to 101.68 yen. The dollar weakened 0.1 percent to 77.96 yen.
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