Euro weakens in Tokyo after France-Germany talks

August 17, 2011 | 08:41

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The euro dropped against the dollar in early Tokyo trade on Wednesday following talks between the leaders of France and Germany on the eurozone debt crisis.

As of 9:30 am (0030 GMT), the euro was changing hands at $1.4360 after dipping at one point to $1.4352, compared with $1.4406 in New York overnight.

The euro also fetched 110.22 yen against 110.67 yen in New York late Tuesday and 110.41 yen in Tokyo the previous day.

France's Nicolas Sarkozy and Germany's Angela Merkel vowed to give the eurozone bloc a "true economic government" Tuesday but experts said their pledges were not enough to defuse the debt crisis.

Speaking after the talks in Paris, the leaders said they would propose an EU-wide tax on financial transactions and seek to create a eurozone governing body headed by European Union president Herman van Rompuy.

But the pair disappointed many by not backing the idea of issuing "eurobonds" to pool the debts of the 17 eurozone members, and by insisting the bloc's existing 440-billion-euro ($634 billion) bailout fund was "sufficient".

The dollar changed hands at 76.73 yen early Wednesday against 76.75 yen in New York and 76.74 yen in Tokyo Tuesday.

AFP

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