“With all the troubles in Europe, it seems to be hard to buy the euro,” said Derek Mumford, a Sydney-based director at Rochford Capital, a currency risk-management company. “The euro is defying gravity. The promise from the European Central Bank to support sovereign debt has had effect, and has been buying some time. The overall picture is getting worse.”
The euro dropped from a five-month high against the yen after Moody´s Investors Service cut the ratings of five Spanish regions and French industrial confidence fell to the lowest in more than three years. The 17-nation currency weakened for the third time in four days versus the dollar.