The euro fell against a broadly stronger
dollar Monday, sliding below $1.10 for the first time since it
was launched at the start of the year.
Michael Urban/Reuters |
|
| The euro has dropped
by nearly eight percent against the dollar since its launch on
Jan. 4
|
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Dollar gains were triggered after the Group of Seven leading
industrial nations said nothing at their weekend meeting to
indicate they would stand in the way of its strength. The euro
has also been hit by weakness in the key euro zone economies and
the perception that the European authorities are not overly
concerned about their currency's weakness.
G7 finance ministers and central bankers, who met Saturday,
said currencies should reflect economic fundamentals and agreed
to work together to avoid excess volatility and significant
misalignments of exchange rates.
However traders drove the dollar higher against the euro and
pushed it to two-and-a-half-month highs against the yen as the
G7 made no mention of specific currencies.
The euro, which fell to a low of $1.0985 Monday, has dropped
by nearly eight percent against the dollar since its launch on
Jan. 4.
Speculation that the euro zone economy is losing momentum
fast enough to warrant lower interest rates has also undermined
the single currency. It also fell to a new life low of 67.78
pence against the British pound Monday, down more than six
percent since its birth.
