Don't miss

Replay


LATEST SHOWS

#TECH 24

Testing robots to play, snuggle and learn

Read more

#THE 51%

Jordan: Where a rapist can marry his victim

Read more

FOCUS

Discovering China's answer to Silicon Valley

Read more

REVISITED

One year after Gaza war, residents still struggling to survive

Read more

FASHION

Behind the scenes of haute couture: Taking time to create something unique

Read more

BUSINESS DAILY

Europe's Final Countdown: 48 hours before Greek referendum

Read more

FRANCE IN FOCUS

Guadeloupe: The story behind France’s butterfly island

Read more

REVISITED

Racial tensions linger in LA, city of Rodney King riots

Read more

Business

Euro sinks below $1.20 threshold for first time since 2006

Text by News Wires

Latest update : 2010-06-04

For the first time since 2006, the value of the Euro has fallen to under $1.20. Some analysts have maintained that as long as the European currency remains over this key rate there was no threat of real crisis in the eurozone.

AFP - The European single currency tumbled under 1.20 dollars on Friday, a new four-year low on contagion fears over the eurozone debt crisis, dealers said.
  
At about 1535 GMT, the euro plunged as low as 1.1993 dollars, its lowest point since March 29, 2006.
  
"The euro has weakened significantly against the US dollar," said TorFX analyst Adam Solomon, adding that global stock markets also plunged "on concern that Europe's sovereign debt crisis will worsen."
  
CMC Markets analyst Michael Hewson said investors were ditching euros amid a flood of negative news.
  
"Europe seems to be the story that keeps on giving," Hewson said.
  
"Rumours of derivative losses at French bank Societe Generale, comments by the French prime minister that he is relaxed about the euro trading at parity against the US dollar, and the Hungarian Prime Minister's spokesman comparing Hungary's fiscal position to that of Greece, has sent investors bailing out of the euro.
  
"This negative sentiment was further reinforced by a disappointing US jobs number which came in way below market expectations."
  
The euro even fell despite a much weaker-than-expected jobs report in the United States, still seeking out its safe-haven status at a time of uncertainty.
  
"This number was a massive disappointment to the market ... and has resulted in further risk aversion across asset classes due to the high expectations," Hewson said.

 

Date created : 2010-06-04

  • MARKETS

    Sarkozy makes show of unity with Germany over eurozone reform

    Read more

COMMENT(S)