EUR Drops on Germany's Short-Sale Ban

By IBTimes Staff Reporter | May 20 2010 10:04 AM

Concerns the European governments are divided on how to contain the sovereign debt crisis threatening to spread over the continent curtailed the EUR's rally against the Dollar. The EUR was again down in European trading today as investors worry about the consequences of Germany's unilateral ban on short selling. Along with suggesting a split among European leaders over how to handle the current crisis, the ban might also make it more difficult for investors to protect their EUR holdings.

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The Yen gained versus 16 of its most traded counterparts indicating a continued appetite for safe haven currencies. The Pound did not to get much support from the release of the U.K. Retail Sales data which showed a modest 0.3% increase in April as the result were in line with expectations.

The EUR fell as much as 0.8% to $1.2322. The EUR is also down at Y112.03 from Y113.41. The USD was down at Y90.92 from Y91.54. The pound is down at $1.4266 from $1.4415.