Euro falls against dollar and yen as investors flee

THE euro tumbled to a four-month low against the dollar and yen as Japanese investors flee the eurozone anticipating a recovery in the Japanese and US economies.

Yesterday's decline extended the currency's slide to 4.5% this quarter against the dollar and 6% against the yen. A surge in the value of the euro in the past year has hurt demand for European exports, contributing to the slowdown in growth.

Ulster Bank financial markets economist Niall Dunne said Japanese investors, seeing what may be the beginning of a recovery in Japan, are taking their cash from the euro area and repatriating it.