Euro Falls to 17-Month Low Against Dollar
The euro fell to a 17-month low against the dollar. In early trading on Monday it dropped as much as 0.8%.
It fell to below $1.12. Euronews reported it briefly touched $1.1161 in Asian trading.
Then it recovered slightly to around $1.12. The Guardian linked the fall to worries about France's debt.
It said France's debt could threaten stability across the eurozone. High energy prices also added pressure on the euro.
Worries about France's public finances were also cited. Euronews said pressure in French government bond markets showed investor concern.
Spain also announced a snap election. This added to uncertainty in the eurozone. Euronews said it followed Spain's parliament rejecting housing measures on Friday.
Klear Note — The euro is shared by countries in the eurozone. Worries in one member country can affect confidence in the shared currency.
Key Terms 3
- eurozone The group of European countries that use the euro as money.
- snap election A vote called earlier than planned.
- bond markets Places where investors buy and sell government debt.