Euro Loses it ground to the Dollar

Wednesday, 20 January, 2010

The Euro is under pressure against the dollar with former losing out from 1.4580, to levels below 1.4200, a reported 5-week low. Early morning trading in London dropped to $1.4199 from $1.4288 in American markets yesterday. The fiscal debt crisis in Greece worsens day by day and following Moody’s A2 debt-rating, the lowest amongst all EU members, The Euro took a beating in the market. The Euro was further weighed down today by the latest Consumer Price Index data released by the UK indicating strong and persistent inflationary pressure. Furthermore, growing speculation that the European Central Banks’ executive board member, Juergen Stark is to maintain a bearish outlook for the euro regions’ economy and also the debt situation in Greece is bad news for the pair. The Debt crisis in Greece is indeed a very serious issue and something which cannot be resolved immediately. The Euro lost out to the other major rivals including the Yen and the Australian Dollar. Given the predicament of the situation in the Euro zone, further erosion of the currency is expected across the global markets in the coming days.