Euro falters as FTT approved by EU

<p>The euro has stumbled in forex trading after the EU approved a financial transactions tax for 11 countries.</p>

The euro has slipped in forex markets versus the dollar, sterling and yen today (January 23rd) on news that the European Union (EU) has approved a new financial transactions tax (FTT).

It is claimed the levy will raise as much as €35 billion (£29.4 billion) annually for the 11 countries that are pursuing FTT, however critics say the fee could open further rifts in the 27-member state.

Currently, the UK is questioning its membership within the EU, while eurozone nations are strengthening their ties in order to fortify the single currency.

Banks and business groups have also warned the FTT would drive share, derivative and currency trading out of Europe.

France, Germany and nine other countries have been given the green light to impose FTT, while the UK, the Czech Republic and Luxembourg all abstained from the vote

At 08:45 GMT, the euro slipped against the pound and dollar to €1 buying £0.840 and $1.329, while it depreciated by 0.7 per cent versus the yen to 71.553 yen.

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