NEW YORK - the euro slid to a five-week low against the dollar on Thursday as a growing uncertainty about Ireland?s ability to repay of its debt attempts when a group of 20 Summit overshadowed global tensions about currency and facilitate trade. Ireland problems have a back seat to fed to the top of the currency concerns, recently moved after taking politics for several weeks. Yields on 10-year Irish bonds issued rose above 8 percent to a record high of comparable German guilt, the euro-zone's standard. Investors are concerned Ireland would not be able, spending cut as planned and require a rescue package with bondholders to absorb losses. "The market has gone back, focusing on Europe rather than the United States where prices are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It has become a game of 'What currency you most like?' and right now, that is currency is the euro." The Fed Treasury purchase program announced bonds last week, is widely considered detrimental to the value of the dollar and a blessing for higher-yielding, considered riskier currencies. That trade, however, may have run its course and Europe debt problems have caused investors higher risk assets in avoiding in favour of the greenback. The euro fell as low as $1.3637 trading platform EBS, a five week trough, and was last down 0.9 percent to $1.3655. Also fell by 0.6 per cent against the yen and hit a seven week low against sterling. "While we think the euro looks vulnerable over the short-term, by the end of the year it will probably head higher," said Anderson. BNP Paribas, said the decline of the euro against the dollar be flat, in the vicinity of $1.3435-$ 1.3333 support over the next few weeks stalling. If key $1.3333 support contains pattern, $1.1875 is intact of the euro underlying longer-term rally off its low around June. As such, euro able would again rally and setting a new cycle $1.4280 later this year or in early 2011 high up, the Bank said in comment. Spike in Irish income and German decline as investors seek refuge in Confederation has come as U.S. returns later enabled partially by a string of strong U.S. economic data including October's employment report removed. Rise above 82 Yen considers the income of the dollar to make even more attractive and it this week for the first time since early October helped. It was 0.3 percent last 82.51 yen. The Fed said to reduce $600 billion of treasuries by mid-2011 to U.S. interest rates and slow growth, would buy boost, if a U.S. think tank report on Thursday could buy the less bonds Central Bank said, when the economy improves. Trading was lighter than usual, with some markets in the United States and Canada for holidays. The US bond market was closed in compliance with the Veterans Day holiday. Europe's woes diverted attention from a G20 Summit in South Korea. Discussion was expected that exchange rate policy and global economic imbalances, contain, although few investors expect a far-reaching agreement. Much of the disagreement to currencies focuses on the United States and China with the former eager to see who appreciate Chinese Yuan at a faster pace. Citigroup's Anderson said the G20 too large a group content agreement at the meeting in Seoul. "There are just too many different interests in play, so we don't expect any major developments to out of it", he said.
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