Euro in six-week low against yen as recession fears rise

The euro fell to a six-week low against the yen as the inflation rate in the eurozone matched the lowest since Feb 2011 in June, adding to concern that the region is headed for a recession.

The 17-nation currency dropped below $1.22 for a third day as German chancellor Angela Merkel said she had not softened her stance on measures to stem the sovereign debt crisis.

It stayed lower as Germany’s top court said it would take over eight weeks to decide whether to suspend the eurozone’s permanent bailout fund.