Euro slips against dollar on lingering debt worries


The euro has slipped further against the dollar amid ongoing worries about Europe’s government debt crisis. The 16-nation euro bought US$1.3218 in Wednesday morning European trading — down from US$1.3284 in New York late Tuesday. The British pound slipped to US$1.5719 from US$1.5769, while the dollar climbed to 83.72 Japanese yen from 83.46 yen. The dollar was helped on Tuesday by a compromise on taxes that could help the U.S. economy. In Asian trade Wednesday, the euro was mixed while the dollar firmed against the Japanese yen as a U.S. decision to extend tax breaks boosted risk appetite, dealers said. The euro was changing hands at US$1.3229, down from US$1.3258 in New York late Tuesday, but firmed to 110.98 yen from 110.64 yen. The dollar edged up to 83.89 yen from 83.45 yen. The dollar was higher against other Asian currencies. It rose to SG$1.3173 from SG$1.3044 Tuesday, to 1,143.65 South Korean won from 1,135.10, to 43.70 Philippine pesos from 43.40 and to NT$30.16 from NT$30.11. The greenback also rose to 9,024.00 Indonesian rupiah from 9.010 and to 30.16 Thai baht from 29.98.

The single European currency was relatively stable after Ireland announced an austerity budget that comprised 6 billion euros (US$8 billion) in savings via tax hikes and spending cuts, analysts said. The 2011 budget meets European Union and IMF conditions for securing an 85 billion euro international bailout package for the country.