The euro fell for the first time in three days against the yen as


The euro fell for the first time in three days against the yen as traders raised bets the European Central Bank will cut interest rates as credit markets threaten global growth.

The euro declined against 11 of the 16 most-traded currencies before a private report that may show business confidence in Germany, the region's largest economy, slid to a two-year low. Europe's single currency has fallen 4.1 percent this month against the yen on prospects lower interest rates may diminish the allure of euro-denominated assets.

The euro fell to 155.54 yen at 1:04 p.m. in Tokyo from 156.11 late yesterday in New York. It declined to $1.4617 from $1.4629. The dollar declined to 106.42 yen from 106.71. The European currency may fall to as low as $1.4550 versus the dollar and 155.50 yen today, Hanao forecast.

The odds on an ECB rate reduction by June increased, futures trading shows. The implied yield on the Euribor June futures contract fell to 3.805 percent today from 3.735 percent yesterday, the lowest since December 2006.


TradingEconomics.com, Bloomberg
1/23/2008 8:54:32 PM