EUR Stays Low vs. US Dollar on Greece Concern
February 23rd, 2010 Posted in Euro-Zone
The European currency traded near a 9-month low against the U.S Dollar as speculation that Greece’s fiscal woes will worsen and have reduced demand for the 16-nation currency. The EUR fell on concern that the debt crisis among the Euro-Zone’s smaller nations will slow the region’s economic recovery, forcing the European Central Bank (ECB) to keep its main refinancing rate at a record low.
The single currency was down at $1.3594 from $1.3596 yesterday. It touched $1.3444 on Feb. 19, the lowest since May 18. Against the Japanese yen the EUR inched up to 124.12 yen, having lost over 0.6% on Monday after a German Finance Ministry spokesman said that the country has made no decisions on a lifeline for Greece.
Weekend reports had suggested that a 20-25 billion EUR package was being prepared, providing a brief boost to the EUR earlier in the trading day. Concerns about heavily indebted Euro-Zone countries, and worries whether they will be bailed out, continue to hurt the EUR, with the single currency shedding around 5% this year.
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Tags: dollar, ECB, eur forecast, Euro, Euro-Zone, Fed, Forex, forex news, Forex Trading, The US Dollar, USD
