Renewed fears for the health of the European banking industry have prompted traders to reduce riskier positions, also because of an article in the Wall Street Journal that highlights some weaknesses of stress tests conducted in Europe. Italian 7.50 to the euro-dollar share in EUR = 1.2805 area (with a minimum of sitting at 1.2788) 1.2873 against the last closing.

To add further pressure on the euro has intervened the German Banking Association who explained how the ten largest institutions of the country needs 105 billion of additional capital as part of any new rules for the banking sector aimed at avoiding future financial crises.

Yesterday, the single currency had risen to a height of 1.2920 against the dollar.

“The concerns about euro zone banks are yet to grow back, appensantendo the mood of investors who had improved a bit ‘after U.S. employment data last week,” said Tsutomu Soma Okasan Securities. “The trend of the euro may have changed since the market is responsive to risk reduction.”

The euro also gave ground against the yen EURJPY =: change reference to 107.55 against 108.34 yesterday. The Japanese currency remains a favorite in an environment of risk aversion.

Just moved the dollar-yen JPY =, to 84.10 from 84.16 yesterday in closing, always fairly close to the minimum 15 years 83.58, given in the last days of August.

After the extension of funds for lending, announced last week, the Bank of Japan has left borrowing costs unchanged this morning at the end of the meeting of monetary policy, but states that it is ready to intervene at the appropriate time with new monetary stimulus.