The euro has fallen on its low level - Forex

The euro has fallen on its low level for four years Monday vis-a-vis the dollar, under 1.23 dollar, before rebounding, pushing the Ministers of Finance of the euro zone to be promised to redouble efforts to reduce their deficits.

Around 21:00 GMT (23H00 in Paris), the euro was worth 1.2394 dollar against 1.2359 dollar Friday evening.

The European single currency also went back vis-a-vis the yen to 114.66 yens against 114.28 yens Friday.

The dollar was stabilized vis-a-vis the Japanese currency with 92.51 yens against 92.47 yens Friday evening.

The European currency fell to 1.2235 dollar towards 02:35 GMT, its low level since April 18th, 2006, before rebounding clearly.

“I do not see anything concrete which changed in the situation” which weakens the euro, Jessica Hoversen estimated, of Total MF, estimating that the rebound of the currency concerned the “profit-takings” after its fall.

“The market remains very bear with respect to the euro”, she added. “So much of problems remain as for the question of the debt, and people are anxious consequences of the austerity measures on the economy.

“At a stretch, a return during birth of the euro -- with 1.18 dollar-- and even the parity, seem more of the scenarios so extreme only that”, their fellow-members of Mizuho Corporate Bank increased.


The investors fear that the problems of debt in euro zone weigh in the long run on the economic revival in Europe, and still doubt the effectiveness of the support plan of 750 billion euros decided one week ago for the countries which would be in difficulty.

The German chancellor Angela Merkel thus estimated Sunday that the euro zone had done nothing but “save time” with the plans of assistance in Greece and that to avoid the contagion with other countries in difficulty.

Monday, the Ministers for Finance of the euro zone, at this meeting in Brussels, promised to redouble efforts to reduce their deficits and to thus stop the crisis of confidence which continues to shake the monetary Union.

Their leader, Jean-Claude Juncker, was said “worried” by the speed with which the value of the euro dropped lately, but not anxious on the other hand of its current level.

Indeed, this fall contains a good news for the euro zone: “the depreciation of the euro will start again the competitiveness of the member countries and will start again exports, (...) whole while making them more competitive vis-a-vis foreign competition on their national markets”, according to Howard Archer, economist at IHS Global Insight.

Around 21:00 GMT, delivers it British dropped vis-a-vis the European currency, to 85.52 pence for one euro, as vis-a-vis the dollar with 1.4489 dollar. It fell to 1.4252 dollar towards 02:35 GMT, its low level since the end of March 2009.

The Swiss currency dropped a little vis-a-vis the euro, to 1.4019 Swiss franc for one euro, after having reached a new higher history with 1.3991 Swiss franc the day before around 18:50 GMT, crossing for the first time the threshold of 1.40 Swiss franc for one euro.

The Swiss currency dropped vis-a-vis the dollar, to 1.1308 Swiss franc.

The Chinese currency finished with 6.8277 yuans for a dollar against 6.8266 yuans Friday.