Share

Euro slips on Portugal bank bailout

Tokyo - The euro slipped against the dollar in Asia on Monday following news of a bailout for a crisis-hit Portuguese bank, while the dollar held steady after falling on US jobs data.

Portugal's central bank announced late on Sunday that the nation will inject €4.4bn into the Banco Espirito Santo (BES) amid fears of a catastrophic bank run.

The euro bought $1.3421 in Asia on Monday, down from $1.3430 in US trade late Friday, while fetching ¥137.80 against ¥137.75.

The dollar was at ¥102.66 compared with ¥102.60 in New York on Friday.

The dollar slipped on Friday after US jobs data for July turned out to be solid but not strong enough to boost inflation expectations.

Stocks were lacklustre on Monday, weighed down by concerns over the impact of stricter sanctions on Russia on European economies and the situation surrounding the BES, said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.

"European risk is having an impact on the broader market," Okumura told Dow Jones Newswires.

BES, Portugal's third-largest banking group, will be split into two entities, with its toxic assets isolated and its healthier assets regrouped in a new Novo Banco, national bank governor Carlos Costa said late on Sunday.

The market focus is now shifting to Thursday's monthly meeting of the European Central Bank (ECB), although it is widely expected to hold fire on new policy action despite a lingering threat of eurozone deflation and geopolitical risks.

"The ECB might be enjoying a summer lull, eventually, with no hints of new action expected" at the upcoming meeting, Credit Agricole said in a note.

The Bank of Japan (BoJ) is also scheduled to hold a two-day policy meeting later this week.

"The upcoming BoJ meeting is unlikely to result in any changes in policy. However, policymakers will have to outline their strategy for 2015 before too long," Capital Economics said.

The dollar was mixed against other Asia-Pacific currencies.

It fell to 32.15 Thai baht from 32.28 baht on Friday, to Sg$1.2464 from Sg$1.2489, to 1 033.01 South Korean won from 1 035.23 won, to Tw$29.99 from Tw$30.03, and to 11 740.00 Indonesian rupiah from 11 791.30 rupiah.

The dollar rose to 60.99 Indian rupees from 60.82 rupees, and to 43.69 Philippine pesos from 43.68 pesos.

The Australian dollar climbed to 93.19 US cents from 92.90 cents, while the Chinese yuan bought ¥16.58 against ¥16.64.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders