By: Barbara Zigah
The U.S. Dollar continues to strengthen against the common currency Euro as investors remain fearful that more Eurozone nations will finally acknowledge the difficulties they’re having working within their fiscal budgets.
Should these nations, specifically Portugal and Spain, ultimately request help from the E.U./IMF mission that was created to aid them, many wonder if the rescue fund could support it. Analysts agree that until the E.U. comes up with a concrete plan to beef up the temporary support account used to help the regions troubled economies, the Euro will remain under significant pressure.
Last week, Irish debt was downgraded, and though markets expected such a move by Moody’s, it nonetheless continues to put pressure on the Euro, which some analysts predict has quite a bit more room to fall.
As reported at 9:28 a.m. (EST) in very thin New York trading, the Euro was moving lower against the U.S. Dollar, trading at 1.3164 following the low of 1.3125 struck earlier. In fact, the Euro has now lost value against 14 of its 16 major counterparts.
Earlier today in the London trading session on the EBS platform, the Swiss Franc struck a new record high against the Euro trading at 1.2693 Swiss Francs, as investors seek a less-risky alternative. The Euro also struck a new record against the Australian Dollar, trading at AUD 1.3243.