Euro falls over no stimulus commitment from US government

Euro falls over no stimulus commitment from US governmentThe Euro has fallen in the Asian trading on Friday against the dollar and yen after the investors expressed concerns over the comments made by US Federal Reserve Chairman Ben Bernanke in which he did not pledge any government support aimed at stimulating the economy.

Bernanke addressed the congressional committee on Thursday on the state of the economy. The weaker economic figures had sparked hopes that the Federal Reserve Chairman might announce some measures aimed at stimulating the economic growth in the US.

It is believed that the weak fourth quarter economic data as well as the continuing debt crisis in the Eurozone would make the region's central bank to respond with stimulus measures. The European Central Bank might not reduce its interest rates but it might be ready to take steps to stimulate the economy during the coming months due to deteriorating economic outlook and a crisis in Spain's banking sector.

Meanwhile, the Asian stock markets also fell even as the People's Bank of China announced an unexpected cut in key lending and deposit rates on Thursday as investors looked to invest more is fixed and safe investment options.