Euro drops against U.S. dollar

The 13-nation euro dropped slightly Monday against the U.S. dollar as traders digested comments made at the weekend meeting of the Group of Seven finance ministers.

In morning European trading the euro bought US$1.2979, down from US$1.3006 late Friday in New York. The British pound fell to US$1.9460 from US$1.9503, while the dollar rose to purchase 122.02 yen from 121.64.

At the G-7 meeting in Essen, Germany, China came under renewed pressure to make its yuan more flexible, while Japan emerged without a public scolding.

Ahead of the meeting of the finance ministers and central bankers from the world's wealthiest nations, Japan had faced complaints from the euro zone that its weakening yen was giving the country an unfair competitive edge, making Japanese goods cheaper than those in the EU, reports AP.

But Japan was left out the G-7's declaration on foreign currency issues, while China was mentioned by name.

"In emerging economies with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments will occur," the ministers said.

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