How Low Can the Euro Go?
Posted on May 17, 2010
The answer to the headline question, at least on Monday, would be $1.2234, as the euro dropped to its lowest point in four years. As this CNN report puts it in somewhat startling terms, ” ... Ongoing debt concerns prompted a flight to the safety of the U.S. dollar.”
This phenomenon also spelled trouble for the U.S. stock market, with the major indexes dipping in reaction to the euro’s plight. —KA
What prices are doing: The dollar rose 0.1% against the euro to $1.2347. Earlier, the euro crashed through the key technical level of $1.23, falling to a four-year low of $1.2234.
The dollar rose 0.5% versus the British pound to $1.4467. It was up 0.1% against the Japanese yen at ¥92.53.
Flickr / U-g-g-B-o-y-(-Photograph-World-Sense-)
The euro symbol looms large in front of the European Central Bank in Frankfurt, Germany.