March 27, 2009 / 9:45 AM / 9 years ago

Euro hits session low on Germany Steinbrueck's remarks

LONDON, March 27 (Reuters) - The euro fell sharply against the dollar on Friday, shedding almost a cent after German finance minister Peer Steinbrueck said the euro was at risk if the EU’s Stability and Growth Pact isn’t taken seriously.

“Germany, as a member of the EU, has a massive interest in the credibility of the Stability and Growth Pact, which as you know is not taken so seriously by some,” Steinbrueck said in a speech to parliament.

“If it is not taken seriously, I am telling you, the euro will have trouble one day in terms of its own credibility and stability.”

The comments pushed the euro to a session low of $1.3460 EUR= and triggered a 0.7 percent swing in the dollar index to 84.429 <.DXY.

Traders said comments from Japanese and Russian officials that the dollar’s status as global reserve currency won’t be challenged at next week’s Group of 20 leaders’ meeting in London also supported the greenback.

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