The euro fell to a record low against the Swiss franc, metals declined and stocks in Asia pared gains on concern Greece will be forced to seek financial aid from the International Monetary Fund:
Europe’s single currency weakened to a 10-month low versus the dollar after French and German leaders said any bailout package for Greece would require IMF help. Copper dropped as much as 0.5 percent, reversing an earlier gain. Futures on the U.S. Standard & Poor’s 500 Index dropped 0.2 percent. The MSCI Asia Pacific Index was 0.2 percent higher at 3:20 p.m. in Tokyo.
Concern that the European Union will call for outside help to solve Greece’s budget woes tempered confidence that the global economic recovery is gaining momentum. Japan’s exports grew at the fastest pace in 30 years in February, Taiwan’s industrial production jumped 35 percent, and an index of computer-memory prices climbed for a sixth day.
The euro weakened against 13 of the 16 major currencies after a German Finance Ministry official told reporters in Berlin that Germany and France agreed to back an IMF role in any aid for Greece. The shift, made before start of a two-day EU summit in Brussels tomorrow, came a week after euro-area finance ministers had agreed to a European framework for a bailout.
Hong Kong’s Hang Seng Index was little changed after climbing as much as 1 percent, while Taiwan’s Taiex Index was 0.1 percent higher after gaining 0.9 percent. The Nikkei 225 Stock Average rose 0.4 percent in Japan, and Australia’s S&P/ASX 200 Index advanced 0.3 percent.
Crude oil declined for the first time in three days as the dollar strengthened and an industry report showed a gain in U.S. crude oil stockpiles. Oil for May delivery fell 0.9 percent to $81.19 a barrel in electronic trading on the New York Mercantile Exchange.
