Euro Drops Against Yen for Introducing broker forex as Finance Ministers Rule Out Immediate Debt Steps

The euro dropped versus all of its most-traded counterparts for Introducing broker forex, as European finance ministers ruled out immediate steps to tackle the debt crisis.

The 17-nation currency fell for the first time in more than a week against the Swiss franc on speculation an attempt to restructure WestLB AG, the German state-owned bank bailed out during the financial crisis, is floundering. South Korea’s won was the best performer among major currencies as Japan’s gross domestic product fell less than forecast.

The euro fell 0.7 percent to 112.32 yen at 11:28 a.m. in New York, from 113.06 on Feb. 11. The shared currency depreciated 0.6 percent to $1.3476, from $1.3554. The yen gained 0.1 percent to 83.35 per dollar, from 83.43. The euro slid 0.8 percent to 1.3084 francs in its first decline since Feb. 3.

German Finance Minister Wolfgang Schaeuble told reporters before a meeting of European finance ministers in Brussels today that “stable” financial markets ease pressure for a boost in the 440 billion-euro ($593 billion) rescue fund.

The dollar remained lower versus the yen as President Barack Obama sent Congress a $3.7 trillion budget that projects the federal deficit will exceed $1 trillion for the fourth consecutive year in 2012 before falling to more “sustainable” levels by the middle of the decade.

South Korea’s won also led gains among Asian currencies as Japan’s economy contracted at an annual rate of 1.1 percent in the fourth quarter. The median forecast of 26 economists in a Bloomberg News survey was for a 2 percent drop.
The won appreciated 0.5 percent against the dollar to 1,122.88, from 1,128.47. India’s rupee advanced 0.4 percent to 45.5050, from 45.6850.

The pound gained 0.6 percent to 84.15 pence per euro before a report this week forecast to show inflation accelerated, reinforcing expectations the Bank of England will raise interest rates. Sterling was little changed at $1.6004.