Dec 20, 2010
The euro declined as fears about the region’s sovereign debt crisis continued to weigh on the single currency.
The euro dropped to a two-week low against the dollar after the European Central Bank warned it had “serious concerns” about the laws governing Ireland’s bail-out of its banking system.
The comments followed credit rating agency Moody’s decision to slash Ireland’s credit rating last week.
Investors also turned to German government bonds as a safe haven, sending the price up and the yield below 3pc for the second day in a row. The gap between the yield on German government bonds and their Irish and Portuguese equivalents widened.
The euro was down 0.2pc to $1.3158 in lunchtime trading, after falling as low as $1.3125.
This article was posted: Monday, December 20, 2010 at 9:07 am