Euro dips on profit taking

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Asian equities have dipped and the dollar rose to a six week high against the euro, today, with gains seen as new concerns of a possible euro zone debt restructuring; promoting market players to reduce risk.

The euro fell as low as $1.4063, its lowest in six weeks, having dropped 5.9 percent from a 17-month peak of $1.4940 hit, less than two weeks ago. The decreased demand for risky trades was also evident in commodity markets, which further weakened while the safe-haven assets like the US Treasuries and Japanese bonds advanced. “The U.S. dollar has turned strong. Investors who have gone long on riskier assets, such as commodities, equities and high-yield currencies, now have to reposition and take profit,” said Robert Hsieh, a vice president of Shinkong Investment Trust in Taipei.

The dollar?s strength has chewed into the oil?s gain last week, with US crude futures down nearly one percent, today. Gold and silver have also edged lower.

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