Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

'New York Post' slammed for publishing ISIS execution images

Read more

DEBATE

Back to Square One?

Read more

DEBATE

Israel-Gaza: Back to Square One?

Read more

DEBATE

Israel-Gaza conflict: 72-hour ceasefire deal sets stage for Cairo talks

Read more

WEB NEWS

Web users divided over Darren Wilson

Read more

FOCUS

Spain's El Hierro to become world's first self-powered island

Read more

IN THE PAPERS

A bellwether for what not to do

Read more

ENCORE!

Luc Besson back in action with Scarlett Johansson in 'Lucy'

Read more

FOCUS

Israel's minorities and military service

Read more

  • US forces tried to rescue slain reporter from IS captors

    Read more

  • Thailand coup leader Prayuth Chan-ocha voted prime minister

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

  • US attorney general visits Missouri town after fatal shooting

    Read more

  • French village rallies behind besieged elderly British couple

    Read more

  • Brazil’s Silva launches bid after Campos plane crash death

    Read more

  • Netanyahu compares Hamas to IS, Gaza offensive to continue

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • France’s ex-PM Juppé sets up presidential clash with Sarkozy

    Read more

  • France’s Hollande says global security ‘worst since 2001’

    Read more

  • France urges Iran, others in region, to join fight against IS

    Read more

  • A new view on Normandy landings, 70 years on

    Read more

  • Dozens killed as landslides strike Japan’s Hiroshima

    Read more

  • Suspected Ebola cases in Austria, new drug raises hopes

    Read more

  • WWII anniversary highlights best - and worst - of Paris police

    Read more

Business

Euro hits new four-year low versus US dollar

Text by News Wires

Latest update : 2010-05-18

The euro tumbled to a new four-year low in New York trading on Tuesday, with markets seemingly unconvinced by eurozone finance ministers' pledges to solve the block's debt troubles.

AFP - The embattled euro fell below the sensitive level of 1.22 US dollars to a new four-year low amid persistent market concerns over the European debt crisis.
   
The euro dived to 1.2162 dollars, its lowest level since April 17, 2006, at around 1900 GMT in New York trading.
   
Earlier in London, it had recovered to 1.2403 dollars after finishing at 1.2394 dollars late in New York on Monday, when it struck a four-year low of 1.2234.
   
Bearish sentiment on the euro prevailed even after eurozone finance ministers vowed to fix the region's finances while expressing concern at their plunging currency.
   
"The sentiment is very fragile," said Vassili Serebriakov, currency strategist at Wells Fargo Bank.
   
"There are probably 100 reasons to sell the euro right now -- the ECB credibility is one issue, the growth concern is another issue, the lack of clear message from the EU different politicians in the euro zone is an issue, and the list goes on."
   
"The only reason to buy is that the market is already holding substantial bearish positions on the currency," Serebriakov said.
   
Traders said the euro's decline accelerated after Germany said it would issue new restrictions on bearish trading, also a reason for Wall Street's plunge Tuesday.
   
"Its downturn steepened following news that Germany will ban naked short selling of certain financial stocks, credit default swaps, and government bonds," analysts at briefing.com told clients.
   
Germany's securities market regulator Tuesday slapped a ban on certain speculative trading practices as it tried to stamp down market volatility in trading in government bonds of the 16 eurozone members.
   
Naked short sales "will be banned from midnight" for certain securities, a finance ministry spokesman told AFP in Berlin.
   
"The extraordinary volatility of the bonds of eurozone states" justified the ban on short selling, said the German market regulator, Bafin.
   
Given the current market conditions, with investors fearing possible contagion from the Greek debt crisis, "new excessive price variations could harm many on the financial markets and threaten the stability of the whole financial system," said Bafin.
   
Naked short selling is when investors sell on the market a stock they don't own and haven't even borrowed, hoping to be able to buy it back later in the day at a lower price, thereby earning a profit.
   
Short selling has been repeatedly implicated in quick drops in markets, and its use has been limited or banned during the financial crisis on major exchanges.

Date created : 2010-05-19

  • European markets

    Spanish stocks plunge 6.64% on eurozone concerns

    Read more

COMMENT(S)