NEW YORK-the euro slipped to a five-week low against the dollar on Thursday as growing uncertainty about Ireland s ability to pay his debts overshadowed attempts at a group of 20 Summit to alleviate global tensions about currency and trade policies. Ireland's issues have moved to the forefront of currency concerns recently after taking a backseat u.s. Federal Reserve policy for several weeks. Yields on 10-year-old Irish bonds increased well above the 8% to a record high of comparable German guilt, the euro zone by default. Investors are afraid of Ireland would not be able to cut expenditure as planned and you may need a bailout, with bond holders forced to lose. "The market has gone back to focusing on Europe instead of the USA, where rates are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It's a game of" what currency do you dislike the most? "and right now the euro zone." The Fed Treasury bond purchase programme, announced last week, is widely seen as detrimental to the value of the dollar and a blessing for higher-yielding, riskier currencies. That the trade, however, may have run its course and Europe's debt problems have caused investors to bypass higher risk assets in favor of the dollar. The euro as low as $ 1.3637 fell on trading platform EBS, a five weeks Valley, and was last down 0.9% at $ 1.3655. It also fell 0.6% against the yen and press a seven-week low against sterling. "Although we think the euro looks vulnerable about the short term, at the end of the year will probably head higher," Anderson said. BNP Paribas said that the decline of the euro vis-à-vis the dollar may be shallow, hang in the neighborhood of $ 1.3435-$ 1.3333 support during the coming weeks. As a central $ 1.3333 pattern contains support for the euro, will form the basis for longer-term rally from its low around $ 1.1875 June intact. As such, would be able to rally again the euro and the creation of a new cycle high above $ 1.4280 later this year or early 2011, the Bank said in comment. The peak in the Irish revenue and decrease of the German income as investors seek accommodation in Bund Futures has come as U.S. yields higher, have turned lifted partly by a series of strong u.s. economic data, including October employment report. Create company revenue dollar more attractive and helped the rise above 82 yen this week for the first time since early October. The last to 0.3 percent on 82.51 yen. The Fed said it would buy $ 600 billion of Treasuries by mid-2011 at the lower interest rates in the u.s. and stimulation of sluggish growth, although a U.S. think tank report on Thursday said that the Central Bank could less bonds buy if the economy improves. Trade was lighter than usual, with some markets in the United States and Canada closed for holiday. The American bond market was closed in accordance with the Veterans Day holiday. Europe's misery the attention of a G20 Summit in South Korea. Discussion it was expected that its exchange-rate policy and global economic imbalances, although a few investors expect a far-reaching agreement. Many of the disagreements about currencies focuses on the United States and China, with the former love to see the Chinese yuan appreciate at a faster pace. Citigroup's Anderson said that the G20 is too big a group achieved a substantive agreement at the meeting in Seoul. "There are just too many different interests in the game, so we do not expect that significant developments to come out of it," he said.
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