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Euro Falls to Lowest Since Lehman as Breakup Concern Increases

Ben Levisohn
Bloomberg News [1]
Friday, May 14, 2010

May 14 (Bloomberg) — The euro fell to its lowest level since the collapse of Lehman Brothers Holdings Inc. on concern that the 16-nation currency may be headed for disintegration.

The shared currency fell through $1.24 for the first time since November 2008 as German Chancellor Angela Merkel said that Europe is in a “very, very serious situation.” El Pais reported that France threatened to leave the euro during talks that led to this week’s almost-$1 trillion bailout. The yen rose against all its major counterparts, including the Australian dollar, as oil retreated for a fourth day.



“The euro is doomed,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Connecticut. “It’s like a clown without its makeup. The strains among the partners are becoming clear and it’s becoming harder to see global growth not being threatened by this. The Australian dollar is tripping over this unfunny clown.”

The euro decreased 1.2 percent to $1.2380 at 11:24 a.m. in New York, from $1.2535 yesterday. It earlier breached $1.25 for the first time since March 2009 and touched $1.2359, the lowest level since October 2008. The euro fell 2.2 percent to 113.77 yen, the lowest level in a week, from 116.27. The dollar traded at 91.90 yen, from 92.72.

Full story here. [1]