common currency

The euro declined against major currencies before the European session on Thursday on Moody’s downgrade for Spain. Besides, a weaker-than-expected German trade data also impacted the euro.

The euro fell to an 8-day low of 1.3806 against the US dollar around 2:15 am ET. The euro-buck pair is presently worth 1.3820, down from 1.3910 hit late New York Wednesday. The next downside target for the pair is seen around the 1.3740 level.

The European common currency climbed up during early Friday trades in Asia after a report showed at 2:00 am ET that Germany's consumer price inflation in December accelerated to its highest level in more than 2-years.

The consumer price index, or CPI, rose 1.7% year-on-year in December, faster than the 1.7% increase in November, the Federal Statistical Office said, confirming a preliminary estimate released on December 29. That was the fastest rise in the CPI since October 2008, when prices jumped 2.4%. Inflation accelerated for the second straight month.

In early Asian session the European common currency regained some losses from its previous sessions as China's Vice Premier Wang Qishan said today that the nation has taken "concrete action" to help some European countries deal with their sovereign debt crisis. The euro rose to a 4-day high against the U.S. dollar.

The euro experienced heavy selling on Monday after the rating agency Moody's said that it may cut the ratings on Spanish banks. This came after its multi-notch downgrade of Ireland's credit rating last week.