The euro saw a bad day against the dollar. On the other hand, yen rose as there were fears of contagion halting from a Greek debt crisis rose and pushed US stocks into negative territory for the year. Investors realized the safety of the US dollar and Japanese yen as the ECB offered no new measures to ease a Greek debt crisis after a meeting earlier.
Brian Dolan, chief currency strategist, at Forex.com in Bedminster, New Jersey said: “This is a full capitulation sell-off we’ve seen in the last couple of hours. The sovereign credit worries in Europe started the ball rolling and now it’s a complete panic.”
On the other hand, the dollar was only weaker against the yen as Japan’s currency tends to benefit in times of risk aversion.
The euro was last down 1.5 percent at $1.2615. The euro has slumped about 5 percent against the dollar.
Euro has fallen to 14 months low against USD. The economic cirses among 2-3 countries is leading to the down fall. I think it would continue to fall futher before it becomes stable.
Ashok
ForexStrategiesNew.com