Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Somalia twin bombings kill 18 in Mogadishu

Read more

MEDIAWATCH

Arming the "good guys"?

Read more

THE DEBATE

Gun Control in the United States: Will the Florida shooting be the turning point?

Read more

FRANCE IN FOCUS

Giving a voice to the homeless in France

Read more

REPORTERS

'Never Again': The students pushing for US gun control

Read more

#TECH 24

A bright future for solar power

Read more

YOU ARE HERE

Winter in France's Burgundy vineyards

Read more

FOCUS

How French cyber police are patrolling the 'Dark Web'

Read more

ENCORE!

Marseille mon amour: Mediterranean city celebrates love

Read more

Business

Euro drops to1.26 dollars, hitting near 14-month low

Text by News Wires

Latest update : 2010-05-06

The euro struck a near 14-month low on Thursday, falling to 1.26 dollars despite European Central Bank assurances that Greece would not default on payments.

AFP - The euro tumbled under 1.27 dollars on Thursday, striking a near 14-month low, despite assurances from the European Central Bank that crisis-hit Greece would not default.

At about 1320 GMT, the European single currency dropped as low as 1.2691 dollars, the lowest point since March 11, 2009.

"Default is for me out of the question," European Central Bank president Jean-Claude Trichet insisted in Lisbon on Thursday after a monetary policy meeting at which eurozone borrowing costs were held at 1.0 percent.

Greece and Portugal are not in the same fiscal situation, Trichet added amid fears that the debt crisis could spread to Portugal.

However, the shared currency was hammered by fears that Greece might default on payments and spread contagion across the eurozone, dealers said.

"The euro is under heavy selling pressure as the situation in Greece reaches crisis point," said Mark Bolsom, head of the trading desk at foreign exchange specialist Travelex.

"The markets are worried that Greece will default on their loan repayments and have no confidence in the bail-out package the IMF are trying to push through," he said.

"There is also mounting concern that the crisis could spread to other member states and the added threats of contagion is exacerbating investors' concerns.

"The markets just don't have any confidence in the eurozone's financial system."

Date created : 2010-05-06

  • MARKETS

    Eurozone stocks tumble over renewed Greek debt fears

    Read more

  • Q&A

    The Greek crisis explained

    Read more

COMMENT(S)