Euro hits 4-year low vs dollar after German regulation

By Rika Otsuka

TOKYO (BestGrowthStock) – The euro hit a four-year low against the dollar on Wednesday after Germany’s move to ban naked short-selling of some securities rattled investors.

Germany on Tuesday announced a ban that covered some high-risk bets of euro-denominated government bonds, credit default swaps based on those bonds, and shares in Germany’s 10 top financial institutions.

Market participants said Germany’s regulation would do little to help fix Europe’s debt crisis and would turn investor attention on to the battered-euro to express their bearish view on the euro zone as a whole.

“Germany’s ban of naked short-selling, which limits risk-taking in euro assets, will only prompt investors to shift their funds to elsewhere,” said Tsutomu Soma, senior manager of the foreign securities department at Okasan Securities.

The euro dipped 0.1 percent to $1.2188. In early Asian trade, it slid as low as $1.2158 on trading platform EBS, its lowest since April 2006.

Against the Japanese currency, the euro slipped 0.4 percent to 112.16 yen, crawling toward an eight-year low of 110.49 yen struck earlier this month.

Stock Market Today

(Reporting by Rika Otsuka; Editing by Edwina Gibbs)

Euro hits 4-year low vs dollar after German regulation