The euro exchange rate towards the dollar has fallen to a two -year minimum. It is reduced by the third session in a row. This happened the next day, after Moody’s warned about the consequences of the credit crisis due to the non-granting of loans from the crisis funds of the EU to individual regions of the Union. According to analysts, the euro might be ready to break through the key area of $ 1.20,000, but further decline is limited due to the fact that serious players expect the results of the meeting of the US Federal Reserve Fund that will take place next week, where politicians will discuss the possibility of further stimulation of the US economy.
Even with a high growth rate of production, in Germany, the owner of the largest economy in the eurozone, quickly, in just three years, the service sector was very much reduced. In France, the activities of factories began to fall rapidly in May 2009.
The fall began, the day after Moody ‘S published negative forecasts for Germany, the Netherlands and Luxembourg, warning that the most high -rated countries in Europe may increase the support of regions with greater external debt, such as Spain and Italy.
“It is felt that strong countries may not have a desire or opportunity to help the economic periphery,” said Vasily Serebryakov, senior currency analytic strategist Wells Fargo in New York.
The euro fell with $ 1.2040, the weakest level since June 2010, increasing the rate of the decline after some EU officials said that Greece was unlikely to be able to pay on external debt, and that it would be restructured by restructuring. Inspectors of the European Commission, the European Central Bank and the International Monetary Fund returned to Athens on Tuesday, where they will complete their analysis of economic creditworthiness next month.
Against the yen of the euro lost 0.7 percent to 94.31 yen, bouncing from the 11-1/2-year minimum of 94.09 yen. The euro also fell against highly liquid currencies. It is traded at the level of $ 1.1789 against the Australian dollar, at least Monday $ 1.1679, and $ 1.2319 against the Canadian dollar, as well as near a record minimum.
Since the European Central Bank reduced interest rates, at the beginning of this month, the euro fell strongly against a number of currencies, since investors are increasingly using it as a financing currency to buy high -profit assets.
The fall of the euro also accelerated after the yield of Spanish bonds jumped significantly above 7 percent, a dangerous level this week. He causes the fears of Madrid who needs a full -scale national crisis. The profitability of Spanish bonds on Tuesday grew after she paid the second most important short -term loan from the moment the euro in 1999 was introduced in 1999.
