Concerns on Euro Zone Economy Precipitates Euros Fall
The Euro lost ground against the U.S. Dollar and the Japanese Yen in early trading today, touching on one month low as investors anticipate that the ECB will cut interest rates later this week. The Euro’s extended losses also was pulled down by the possibility that Standard & Poor, the international rating agency, will downgrade Spain's top "AAA" and as such, heightened concerns about the Euro Zone’s future economic outlook.
The Euro's fall versus the U.S. Dollar was also due partly by gains the U.S. Dollar made versus the New Zealand dollar, following Standard and Poor's warning that the agency is likely to downgrade the country’s foreign currency debt rating. The New Zealand Dollar dropped below $0.5600 versus the U.S. Dollar, and to its lowest level in over a month, against the Japanese Yen.
The Euro dropped by 0.7% percent from late Monday trading in New York to $1.3261 after hitting $1.3240, the lowest trade in a month. Versus the Japanese Yen, the Euro lost 0.6% and traded at 118.50 yen, after dropping to a low of 118.30 Yen.