Officials with Group of 20 nations at the summit in France lent support to plans to resolve the sovereign debt crisis, which pulled down the Japanese yen, according to Bloomberg.
As European stocks increased in value, safe-haven investment assets like the yen lost value to the dollar as the Japanese monetary unit approached its lowest value in one month to the world's reserve currency. Despite the progress with the sovereign debt crisis, a currency strategist told the news service of the likelihood of pessimism from leaders in the euro zone.
"I'd expect there to be a fair bit of dissent amongst European leaders and some of that is likely to leak out," currency strategist Mike Burrowes with Bank of New Zealand in Wellington told Bloomberg. "My bias for euro, kiwi, Aussie and the like is to buy dips, as we are getting closer to a package and that will see a stabilization in sentiment."
Against the greenback and the single currency on Monday morning, the Japanese yen fell 0.3 percent and 0.4 percent, respectively. But the euro drove toward its highest value against the U.S. dollar since September 16 with a 0.1 percent lift.
But, despite G-20 leaders' support, Reuters reports private bankers' eyebrows raised regarding increased bank resources being used for sovereign debt issues.
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