The euro fell for a second day against the dollar in Forex Trading as speculation Ireland will struggle to gain support for its budget and political uncertainty in Greece damped demand for the region’s assets.
Europe’s currency weakened versus 13 of its 16 major counterparts before European Union Economic and Monetary Affairs Commissioner Olli Rehn arrives in Dublin today to look at Ireland’s budget plan.
The euro also dropped as traders awaited the final results of Greek local elections, seen as a test of the support for the George Papandreou’s government.
The euro dropped to $1.3940 as of 11:31 a.m. in Tokyo from $1.4032 in New York last week. The 16-nation currency declined to 113.33 yen from 114.03 yen. The dollar traded at 81.28 yen from 81.26 yen.
Japanese stocks rose, driving the Nikkei 225 Stock Average to its fourth straight gain, after a government report last week showed the U.S. added more jobs than forecast, and as commodity prices increased.
Honda Motor Co., Japan’s second-biggest carmaker that receives about 42 percent of its revenue from North America, climbed 2.9 percent as the yen weakened. Fanuc Ltd., Japan’s largest industrial robot maker, advanced 2.3 percent. Mitsui & Co., the country’s No. 2 trading house by market value, increased 3 percent. JX Holdings Inc., Japan’s biggest oil refiner and copper producer, rallied 6.3 percent after raising its full-year profit forecast.