The yen weakened 4.8 percent in the past three months, the worst performance among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar fell 4.1 percent, the second biggest decline, while the euro rose 3 percent.
France’s President Francois Hollande called on the EU to press ahead on forming a banking union, provide economic help to countries that rein in budget deficits, and show investors that Greece will be able to stay in the monetary union if it keeps its commitments.
“We need to begin to execute these things, rapidly,” Hollande said in a joint interview published yesterday by six European newspapers. “Europe can’t afford to be late anymore.” Hollande and his 26 counterparts from other EU nations will begin a two-day summit today in Brussels.
Merkel, addressing German lower-house lawmakers before the EU leaders’ meeting, proposed a European Union “solidarity” fund to bolster competitiveness in struggling member countries.
Sweden’s krona appreciated 0.6 percent to 8.5962 against the euro, after rising to 8.5662, the strongest level since Oct. 5. It gained 0.4 percent to 6.5608 versus the dollar, after reaching 6.5320, the most since Sept. 28.
There are risks in keeping rates low for a long time that “can’t be ignored” as policy makers must take heed of financial stability and debt growth, Swedish central bank Governor Stefan Ingves wrote in an opinion article today in Svenska Dagbladet. The Riksbank last month predicted it would keep its benchmark interest rate at 1.25 percent over the next year and then raise rates as the global economy recovers.
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