Euro continues to fall over debt fears

| December 1, 2010 | 0 Comments
Euro continues to fall over debt fears

The euro is continuing its slide against the US dollar over debt concerns in the euro zone.

The single currency is falling as investors are nervous that the debt crisis could spread to weaker economies, such as Portugal and Spain – despite reassurances from both countries that the recent Irish bailout will stabilise the euro zone.

However, fears are now mounting for Italy and Belgium as spreads on bonds continue to rise.

In early trading today, the euro gained slightly to $1.3020, up from its Tuesday low of $1.2969.

Ministers are desperately trying to end the speculation that larger European countries could default and send the whole of the euro zone into crisis.

While the yield on Portuguese bonds stabilised at 6.97% - there are still concerns that the country will be the next in line for assistance - something which the Portuguese Government and the EU has strongly denied.

Earlier this week, Nouriel Roubini, said in an interview published in business daily Diario Economico that “a bailout for Portugal is becoming increasingly likely”.

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