Euro slips to decade low against the yen

As fears about the debt crisis in Europe continued, those involved in forex trading saw the euro fall to its lowest level in more than ten years against the yen.

Kengo Suzuki, manager of the foreign-bond department in Tokyo at Mizuho Securities, explained to Bloomberg: "There isn't much progress in containing the sovereign problem and Europe will possibly slip into recession ... that's negative for the euro."

In New York yesterday (October 3rd), the euro fell to 100.97 yen at the close of trading, after dipping as low as 100.76 yen over the course of the day.

It also declined against the greenback, falling to $1.3164 yesterday before rising again to $1.3213.

However, Mr Suzuki suggested that there could be a push to buy back some of the euro in the near future as forex traders may start to consider the 17-nation currency oversold.

This comes after currency strategist at Brown Brothers Harriman & Co in New York Mark McCormick told the news provider that the euro is likely to the one most sold on rallies, forecasting that it could slip to as low as $1.28 by the end of the year.

Posted by Chris Weaver