Euro falls as world finance leaders discuss Europe

AP News
Posted: Jun 05, 2012 4:13 PM
Euro falls as world finance leaders discuss Europe

The euro fell against the dollar Tuesday as leaders from the world's seven wealthiest nations discussed solutions to Europe's ongoing debt crisis.

The euro fell to $1.2446 in late trading Tuesday from $1.2494 late Monday.

After a conference call Tuesday, finance ministers and central bank presidents from the United States, Japan, Germany, France, Britain, Canada and Italy said they will continue to monitor developments from Europe's. The Group of 20 major economies are meeting next month Mexico where Europe will be its focus.

Traders are increasingly worried that Spain and Cyprus will need financial aid to help their banking sectors. Concerns about Spain escalated last month after the lender Bankia said it needs more government aid. On Monday, Cyprus' central bank chief said it is likely the island will need to ask for a bailout.

The dollar traded higher against most other currencies Tuesday. The British pound fell to $1.5369 from $1.5385. The dollar rose to 78.73 Japanese yen from 78.34 yen and to 0.9651 Swiss franc from 0.9613 Swiss franc.

The dollar fell to 1.0384 Canadian dollar from 1.0396 Canadian dollar.