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Euro slides to another six-week low against USD
The euro dived to a new six-week dollar low after French, German and Italian leaders agreed not to widen the role of the European Central Bank to support weaker eurozone states.
The euro has dived to a new six-week dollar low after French, German and Italian leaders agreed not to widen the role of the European Central Bank to support weaker eurozone states
Shortly after 17:00, the European single currency sank as low as US$1.3316, which was the lowest level since October 6. That compared with US$1.3334 late in New York on Wednesday.
Eurozone giants Germany and France vowed to propose changes to EU governing treaties, but Chancellor Angela Merkel stood by her refusal to widen the European Central Bank's role.
France had urged Berlin to allow the ECB to become a lender of last resort, with the firepower to protect debt-ridden eurozone members from falling victim to the bond markets, but the German leader stood firm at crisis talks.
President Nicolas Sarkozy of France and Prime Minister Mario Monti of Italy stood by her side at a news conference in Strasbourg as she repeated her line.
Sentiment was also hampered after the yield on Italian 10-year bonds, the broad cost of government borrowing, soared back above 7.0 percent in late afternoon trade.
And in a fresh sign that all was not well among the eurozone's peripheral nations, Fitch cut its rating on bailed-out Portugal to junk-bond status at 'BB ', blaming its high level of debt and weak economic outlook.
