The euro fell to the lowest level in more than a week amid growing concerns about Deutsche Bank AG’s finances.
Europe’s single currency ended two days of stasis versus the dollar and dropped against most of its major peers as about 10 hedge funds were reported to have moved to reduce their exposure to the biggest German lender. The yen was supported as stocks tumbled across Europe, sending investors rushing for havens.
“The euro is finally starting to respond to the growing fear,” said Valentin Marinov, head of Group-of-10 currency strategy at Credit Agricole SA’s corporate and investment-banking unit in London. “Markets are spooked by the stories about clients cutting exposure to the troubled German lender, and that boosted demand for haven currencies.”
Europe’s 19-nation currency dropped 0.4 percent to $1.1183 as of 10 a.m. in London, and touched $1.1168, the lowest since Sept. 21. It had been little changed this week until today. The yen appreciated 0.4 percent to 112.95 per euro.