TOKYO-the euro s losses deepened on Tuesday as resurfacing concern about peripheral euro zone debt kept it under pressure, and if in the short term players closed dollar short positions as they prepared for book-closing. The euro fell to the lowest in more than a week against the u.s. dollar, which costs $ 1.3847 with potential seen for a slide to $ 1.3700, but then claw back a bit like the yen rose suddenly on the dollar in a move that dealers said appeared driven by order flow. Tokyo dealers said a foreign bank had sold the dollar for yen, with stops approximately 80.80 yen activated that pushed lower and wiped out some of his strength. However, the euro on the back foot, shedding of 0.7% on the yen after a decline of 0.8% on Monday. The market was very short dollars for the last week Fed decision on additional band buying the euro falls arising from the settlement of dollar short positions, while the market liquidity as Dr. Whippy running thins. Gareth Berry, strategist at UBS in Singapore, said that the market was concern about Ireland as a chance to get and sell the euro after the rally of $ 1, 27 September to a 10-month high of $ 1.4302 last week. "It can be a quick dollar positive story given positioning is the way that it has become," said Berry. A trader at a European Bank said some macro players and Commodity Trading advisors, short-term players, align their short positions in dollar forward and Futures for their book close at the end of this month or next. But they were still stick to dollar bearish views and buy dollars at the same time, respond to any further decline. The euro fell 0.2% to $ 1.5397 and 0.7% lower at 112.24 yen. The euro also two-month lows versus the Aussie on a $ 1.3692. EU economy Commissioner Olli Rehn, said during a visit to Ireland, he had no need of a bailout of the EU with the country not discussed, and that he believed that market confidence would be restored as soon as the country published his four year plan to cut of debt. Ireland is expected to publish the details of the plan later this month. Concerned about a political impasse in Dublin for the vote of an important budget saw shooting than 8% of the returns of the 10-year-old Irish bonds on Monday — much higher than the cost of loans from the European Union's Emergency Fund. "A clear solution (and thus a turnaround in the broadening of the spread) seems unlikely and as long as uncertainty, spreads remains under pressure," said RBC Capital Markets strategist Matthew Strauss. "That's good news for USD bulls, but gloomy news for risk bulls as an escalation of these concerns can easily continue working in wide risk aversion, detrimental effect on the commodity currencies such as AUD and CAD." The dollar index, a measure of performance relative to a basket of currencies, edged up 0.2 percent to 77.09. The dollar is still down 0.4 percent on the day on 80.83 yen after previously company steadily above 81.00. It remains in the sight of the 1995 record low of 79.75 yen and capped at 82 yen, which offers from Japanese companies were seen. "Unless we new commercial factors, it is difficult to see the dollar/yen rise above that level," said Daisuke Karakama, market Economist at Mizuho Corporate Bank. The Australian dollar, which tends to suffer as risk appetite retreats, was stable on the day at $ 1.0133, a 28-year-old peak around $ 1.0180 set last week have withdrawn. But it fell 0.4% against the yen to 81.88 yen. The market is also this week's meeting of the G20 leaders in South Korea. The top has been pitched as an opportunity for the leaders of the countries that account for 85% of the world's output to prevent a currency row escalate to a rush to protectionism, which the global recovery. But there is little sign of consensus and the meeting has been overshadowed by disagreements on the quantitative easing policy from the Fed. The move helped to pressure from the US dollar and increased anxiety that can cause a destabilising flow of money in emerging economies. "I think they will struggle to come up with a substantive plan," said Grant Turley, strategist at ANZ in Sydney.
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