ECONOMY

Euro at 3-month low as Greek concerns weigh on debt sales

The euro slid to a three-month low before Italy, Spain and France sell bonds next week amid concern the region?s debt crisis is deepening.

The shared currency headed for a second weekly drop as Greek political leaders go into a fifth day of talks to form a government and before data that may show the euro region?s economy contracted. Australia?s dollar slid after data showed China?s industrial output and retail sales rose less than estimated. The dollar and the yen were poised to rise versus most major peers this week amid demand for haven assets.

?We can?t become positive and buy the euro,? said Daisaku Ueno, a senior foreign-exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. ?Regardless of whether Greece exits the euro, it will take a lot of time to resolve the region?s debt crisis.?

The euro weakened to $1.2905, the least since Jan. 23, before trading at $1.2917 as of 6:48 a.m. in London, 0.2 percent lower than the close in New York Thursday. It?s poised for a 1.3 percent decline this week. The common currency slid 0.3 percent to 103.12 yen, set for a 1.3 percent drop since May 4. The dollar fell 0.1 percent to 79.85 yen.

The MSCI Asia Pacific Index of shares retreated 0.9 percent after JPMorgan Chase