By: Barbara Zigah
The 10-year anniversary of the Euro came and went on Sunday with very little fanfare, as reasons to celebrate the common currency appear far and few between. Political leaders continued to urge the bloc’s various governments to ensure that they work to find a resolution to the ongoing debt crisis and save the Euro. Wolfgang Schaeuble, the German Minister of Finance, said that the Euro was still “a clear success story,” despite the fact that it remains extremely vulnerable to headline news.
As reported at 2:48 p.m. (JST) in Tokyo, the Euro was trading against the U.S. Dollar at 1.2932, a 0.16% decline from the previous close of 1.2952 and well off the 2011 high of 1.4247. On Friday, the last trading day of 2011, the common currency also struck a 10-year trough against the safe haven Japanese Yen, trading at 99.963 Yen. More recently, the Euro was trading lower against the Yen at 99.4750 Yen.
Most analysts are predicting that 2012 will prove to be a make-or-break year for the common currency. Some of the more vulnerable bloc members could be forced to leave the Eurozone, as the demands of tighter fiscal integration speed their withdrawal. Angela Merkel, the German Chancellor, cautions that 2012 is likely to be considerably more difficult than 2011, while the president of Italy Giorgio Napolitano, warned Italians that more sacrifices were in store.
Euro Off To Rocky Start for 2012
Barbara Zigah