Euro backs off seven-week high amid renewed banking concerns

Euro extended its losses in European trade against dollar off seven-week highs, on active profit-taking and amid renewed banking concerns while investors shun risks. 

European banking stocks extended their losses, led by Deutsche Bank with credit rating for Europe's banking sector downgraded.

The dollar continues to recover from seven-week lows on alternative investment demand, after US Treasury Secretary Janet Yellen sounded her concerns about the strength of the US banking sector. 

EUR/USD fell 0.6% to 1.0768, with a session-high at 1.0838, after losing 0.25% yesterday, the first loss in six days away from seven-week highs at 1.0930.

Deutsche Bank

Deutsche Bank's stock tumbled 5% today, following a 3.2% loss on Thursday, leading the banking sector down today.

CitiGroup recently cut down the credit rating for European banks to neutral from overweight, pointing to the impact of the European Central Bank's policy tightening.

The Dollar

The dollar index rose 0.4% on Friday away from seven-week lows at 101.92 against a basket of major rivals. 

Dollar is boosted by haven demand amid ongoing concerns about the banking sector, with Janet Yellen asserting the emergency measures taken to support the Silicon Valley Bank and others could be used again if needed.