The euro was seen dull against the yen as Spain’s takeover of a small bank fueled fears of systemic risks within the banking system that could hurt global growth prospects. Camilla Sutton, senior currency strategist at Scotia Capital in Toronto said: “The general fear is that developments in Europe would have a much broader global impact. Increasingly, market participants are getting scared and fearful that we may have a repeat of late 2008.”
Brian Dolan, chief currency strategist, at Forex.com in Bedminster, New Jersey said: “We had some short-covering in the euro this afternoon, which led to some stop-losses.”
The euro was down 0.1 percent at $1.2338. Against the yen, the dollar fell 0.3 percent to 89.93. Pound was down 0.3 percent at $1.4381.
(source: reuters.com).