Euro falls vs dollar, European banking have problems

The euro fell across the board on Tuesday after they revive concerns about the European banking sector, prompting investors to sell high-risk currencies.
The yen and Swiss franc climbed supported in its appeal as a haven, after a report in The Wall Street Journal that highlighted the shortcomings of the evidence of resistance to European banks this year sparking risk aversion.The report is called after the German banking association said on Monday that the 10 largest banks may need 105,000 million euros of additional capital under the new rules and the Euro falls vs dollar.
Fears about the banking sector also increased the yield spreads between sovereign bonds of the peripheral countries of the euro area and the German reference.
The cost of insuring debt of countries like Portugal and Ireland also rose against the moratorium, further reducing demand for the single currency and the Euro falls vs dollar.

Euro falls vs dollar

"At the moment, the news about the German banks and resistance tests weighed on risk appetite," said Sven Schubert, a currency analyst at Credit Suisse in Zurich.
"But concerns about the evidence were already known, so the impact could be short-lived," he added.
At 0933 GMT, the euro was down about 1 percent to a low of 1.27560 day, a decline from a high of 1.2920 on Monday, its highest level in almost three weeks and the Euro falls vs dollar.
"We have seen the correction of the euro since June to $ 1.30 region, and people are worrying about the new negative news in the banking sector in the euro zone in the third and fourth quarters," said Chris Turner, strategist ING.The euro's losses helped push the dollar index, which rose 0.6 percent against a basket of currencies to 82.545, recovering from a fall to its lowest level in more than three weeks on Monday.

Against the yen, the euro was down 1.2 percent to 107.10 yen. The Japanese currency climbed across the board, pushing the dollar to fall 0.3 percent to 83.72 yen, also the Euro falls vs dollar and near a 15-year low of 83.58 reached last month.
Risk aversion also drove the Swiss franc as the euro fell 0.8 percent to 1.2920 francs and the dollar eased 0.2 percent to 1.0128 francs.