Euro slides, Europe banking issues in focus

THE euro fell broadly yesterday after rekindled concerns about the European banking sector and prompted investors to sell higher-risk currencies.

Investors were focused on an announcement by Germany's banking association that the country's 10 biggest banks may need €105 billion of additional capital under revamped rules.

The yen and the Swiss franc rallied, supported by their safe-haven appeal after a Wall Street Journal report highlighting the shortcomings of European bank stress tests earlier this year also helped spur risk aversion.

The German association announcement had limited impact whwn it was released on Monday as market volume was thin due to a US market holiday. Reuters