Euro currency hits lowest level in four months | Business| Economy and finance news from a German perspective | DW | 16.05.2012
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Euro currency hits lowest level in four months

The euro currency is dipping further against the dollar on financial markets and has reached its lowest level in four months in Asian trade. The drop comes amid rising worries over Greece's political future.

Members of the 17-nation eurozone saw their single currency tumble in Asian trade on Wednesday, with the euro teetering towards its lowest value in exactly four months.

The currency hit $1.2693, it's lowest against the greenback since January 16, while it bought 101.96 yen, down from 102.12 in New York on Tuesday.

The continued drop of the euro came as German Finance Minister Wolfgang Schäuble categorically ruled out any changes in the continent's plan to financially support debt-stricken Greece. "This is an aid program that was prepared down to the last detail, we cannot renegotiate it," Schäuble told Deutschlandfunk radio on Wednesday.

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The minister's warning came a day after Greek political leaders said they were unable to form a new government, paving the way for new elections. Schäuble reiterated his resolve to keep Greece in the euro area, but added it was "a sovereign decision by the Greek people".

"Speculating about what Greece will choose does not help matters either," he said. But concerns of contagion are increasingly becoming a threat to the euro. Markets feel the credibility of the currency is at stake.

Earlier in the week, Spain already felt the pressure rising with yields on its 10-year sovereign bonds going up further. And Italy saw 26 of its banks downgraded, adding to fears in the eurozone that the situation may spin out of control.

hg/ai (AFP, dpa)