Euro Hits 10-Month Low against Dollar

Finance | March 2, 2010, Tuesday // 16:28|  views

The euro traded at USD 1.3436 in late Tuesday morning, its lowest since May 2009. Photo by EPA/BGNES

The euro has fallen to its lowest level against the dollar for 10 months amid continuing concerns over Greece's debt crisis.

The euro traded at USD 1.3436 in late Tuesday morning, its lowest since May 2009.

The pound was lower for a sixth day, down 0.4% to USD 1.4936 following concerns over a possible hung parliament and the UK's high level of debt.

The euro was up 0.4% against the pound, to 90.53 pence.

European Commission President Jose Manuel Barroso told Austrian newspaper Kurier that European Union (EU) governments need to be more disciplined over their public finances.

"Every euro spent to finance the debt cannot be used for schools, hospitals or innovation," Mr Barroso said.

According to Barroso the governments need to be more disciplined over their public finances.

Greece is under intense pressure from the EU and financial markets to bring down its budget gap, which hit an estimated 12.7% of gross domestic product last year, four times above EU limits.

The Socialist government has pledged to cut that deficit to 8.7% of GDP this year, and below the EU's 3% limit by 2012.

The Greek crisis has triggered fears about the stability of the eurozone and concerns that it may end up foiling Bulgaria's aspirations to join the euro in three years, despite the country's budgetary rigor.

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Tags: Eurozone, ERM II, IMF, EC, ECB, Eurobank EFG, greece

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