Bloomberg News

Euro Falls Versus Most Major Counterparts on Irish Plan to Hold Referendum

February 28, 2012

The euro fell against most of its major counterparts after Ireland said it will hold a referendum to ratify the European fiscal compact, increasing concern the measure may face resistance.

The 17-nation currency earlier rose against the dollar as the European Central Bank prepared to allot three-year loans tomorrow to improve the liquidity of the region’s banks. Higher- yielding currencies, led by Norway’s krone, advanced after a U.S. report showed consumer confidence in the world’s largest economy improved this month. The pound rose against the euro after an index of U.K. retail sales climbed.

“The risk is that the vote goes against it,” said Kit Juckes, head of foreign-exchange research at Societe Generale SA in London. “Bears will see this as a pin to burst the bubble of complacency about Europe that has peripheral bonds doing better.”

The euro rose 0.1 percent to $1.3416 at 10:37 a.m. in New York after earlier rising as much as 0.5 percent. The common currency weakened 0.4 percent to 7.4830 Norwegian krone. The dollar rose 0.1 percent to 80.68 yen.

To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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