Euro Declines, Dollar, Yen Advance as Asian Stocks Retreat

Euro Declines, Dollar, Yen Advance as Asian Stocks Retreat ; The dollar and yen advanced against their major counterparts as Asian stocks slumped and commodities including oil declined, boosting demand for the safest assets.

The greenback also rose before a U.S. report forecast to show orders for most durable goods increased and as economists said a May 26 report will signal the world’s largest economy expanded by more than previously estimated in the first quarter. The euro fell against the dollar amid concern Europe’s sovereign debt crisis will spread as policy makers disagree over how to solve Greece’s debt woes.

The dollar is being bought as there is a risk-off move in the market with falling stocks,” said Takashi Kudo, senior manager of the foreign-exchange division support center in Tokyo at NTT SmartTrade Inc., a unit of Japan’s largest phone company.

The dollar rose to $1.4042 per euro as of 10:51 a.m. in Tokyo from $1.4100 in New York yesterday after reaching $1.3970 on May 23, the most since March 17. The greenback traded at 82.04 yen from 81.95 yesterday. Europe’s common currency fell to 115.19 yen from 115.56 yen.

The MSCI Asia Pacific index of stocks dropped 0.6 percent and crude oil fell 0.9 percent.

A Commerce Department report today will show that orders for durable goods, excluding volatile transportation bookings, increased 0.5 percent in April after a 2.3 percent jump the prior month. Overall demand fell 2.5 percent, economists said, because of a drop in airplane orders at Boeing Co.
ECB Speakers

The pace of U.S. growth during the first quarter was stronger than previously estimated, economists said figures tomorrow will show. The economy expanded at a 2.2 percent rate, up from the 1.8 percent initially estimated, according to the survey median.

European Central Bank officials are scheduled to speak today after Governing Council member Christian Noyer yesterday said an austerity program was the only solution for Greece.

Noyer ruled out a restructuring of Greece’s debt, calling it a “horror story” that would leave the nation shut out of financing for years.

ECB Council Members Mario Draghi, Erkki Liikanen and Chief Economist Juergen Stark along with German Chancellor Angela Merkel are set to speak. Some European Union officials have supported a so-called "reprofiling" of Greece’s debt, where by its payback period could be lengthened and its interest costs may be reduced.

Moody’s Investors Service is “very likely” to class a reprofiling of Greek debt as a default, according to its EMEA Chief Credit Officer Alastair Wilson. (source /www.bloomberg.com ) For the latest updates PRESS CTR + D or visit Stock Market news Today

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