Author Topic: Euro Sinks To Nine-Year Low Against Dollar  (Read 1090 times)

Offline thaiga

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Euro Sinks To Nine-Year Low Against Dollar
« on: January 05, 2015, 06:09:13 PM »
   bangkokbank       Buying Rates Selling Rates    

GBP United Kingdom    49.72    51.16       
EUR  Euro Zone            38.89    39.90

Travellers may smile but investors continue to worry whether the 19-nation eurozone can free itself from economic woes.   

The euro has dropped to a nine-year low against the US dollar as investor fears over growth prospects continue to grow.

On Monday morning the currency dropped 1.2% in value to €1.19, the weakest spot exchange rate since early 2006.

The pound was worth almost €1.28 on spot markets - helping UK travellers to the continent.

The euro sell-off comes amid doubts that a new quantitative easing (QE) programme, hinted at by European Central Bank (ECB) boss Mario Draghi, will help the ailing currency.

Concerns have also been raised about a Greek left-wing government led by the Syriza party taking power - cutting austerity reforms - just months after it clawed its way out of a lengthy recession.

French President Francois Hollande said it was up to Greece to decide its future in the eurozone, with any new leaders having "to respect the commitments made by their country".

His comments on national radio come after a weekend German report said the Merkel government believed the currency bloc would survive even if there was a Greek exit.

The latest sell-off comes as a poll by the Financial Times of 32 leading eurozone economists casts doubt on the effectiveness of any QE programme by the ECB.

A majority believe the ECB will launch a major recovery plan this year, as growth and inflation both continue to weaken in the 19-nation currency bloc.

Some put a possible QE programme at €500 (£390bn) while others believe it may top €1tn (£780bn).

The ECB previously said it and Mr Draghi supported an extension of its monetary policy to help the eurozone recover.
Anyone who goes to a psychiatrist should have his head examined.