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The euro slid against the dollar on Monday, giving up Friday's gains, hampered by looming monetary easing from the European Central Bank and worries about the impact of the Russia-Ukraine conflict on Germany, the euro zone's largest economy. Europe's common currency had climbed above $1.34 on Friday as investors covered overextended short positions but the rally proved short-lived given the euro zone's fundamental backdrop, although the euro seemed to have found support at $1.3350.
"The euro remains in a sell-the-rally mode as growth in the region is threatened by the ongoing conflict with Russia which is likely to have a particularly negative impact on German growth," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. In mid-morning New York trading, the euro was down 0.2 percent on the day against the dollar at $1.3385. Against the yen, the euro was 0.1 percent lower at 136.67 yen. The dollar, meanwhile, was up 0.1 percent against a basket of currencies at 81.462. It was up as well versus the yen at 102.09 yen. The crown surged around 1 percent against the euro after the data amid high volumes, hitting 8.2835 crowns per euro.

Copyright Reuters, 2014

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