European banks could cause the collapse of the euro

Euro drops in value against the dollar on fears about problems that can confront the banking sector of the Old World, in particular - increase the cost of borrowing in the market, reports Bloomberg. Euro on Tuesday, fell 10.08 to the dollar to 1.2257 dollars per euro against 1.2274 dollars per euro the previous day. The dollar, in turn, lost in value against the yen to 88.71 yen to the dollar against 89.40 yen per dollar. In general, the dollar to a basket of six currencies of countries - major U.S. trading partners increased by 0.11% - up 85.75 points. "There are fears that banks will have to pay more for loans to refinance debt, which could potentially impact negatively on their profitability - said in an interview with Bloomberg on the head of the foreign exchange market Credit Agricole Corporate and Investment Bank Yuji Saito (Yuji Saito). - This negative impact on the euro. " Bank for International Settlements on Monday released its annual report. Experts of the international financial institution whose primary function is to promote cooperation between central banks and to facilitate international financial transactions, mark it likely that European banks could face serious difficulties in refinancing of old debt, if investor sentiment to remain low. Concerns about rising cost of borrowing for banks persist despite the fact that the European Central Bank in the midst of the crisis of sovereign debt in Europe decided to extend the framework within which banks have access to the euro three-month loans without restricting their volume. On reducing the cost of the euro against the dollar are also forecast for the level of consumer confidence in the economy of the eurozone in June. Thus, analysts polled by the information-analytical Internet portal dailyFX.com, predict reduction of the indicator to 98.1 points from 98.4 points in May. The yen strengthened against the dollar on Monday on the background and negative forecasts for consumer confidence in the U.S. economy. According to analysts, the index declined in June to 62.5 points from 63.3 points a month earlier. "Fears regarding the long-term recovery of the U.S. economy increases, - said the general manager of foreign exchange transactions Tokyo Forex & Ueda Harlow Ltd. Masanobu Ishikawa (Masanobu Ishikawa). - This has a negative impact on the dollar." Bank.ru Materials Rihanna.