Euro hovers above eight month low

The euro hovered above an eight-month low in Asian trade after euro zone finance chiefs reassured their Group of Seven counterparts over Greece's deepening debt troubles.

The euro stood at $1.3626 in Asian trade this morning, after sliding to as low as $1.3586 in New York on Friday.

Dealers said the European currency received a modest boost from remarks by euro zone finance officials at the G7 talks in Canada on Greece's efforts to rein in its public debt of more than €294 billion.
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'The European members of the G7 have confirmed to the other partners of the G7 the substance and the significance of the debt-reduction plan put together by Greece, and that they are confident that it will be managed,' French Economy Minister Christine Lagarde said.

The single European currency has been hammered by worries that debt-ridden countries such as Greece, Spain and Portugal may be unable to restore stability to their public finances, having spent heavily to combat recession.

Investors are now looking ahead to the European reports on economic growth, due for release later this week.