Euro slips over EU debt crisis

Source: Press TV
http://www.presstv.ir/detail/159040.html

The European Union's (EU) single currency has dropped to a near four-month low against the US dollar over Eurozone's continuing debt problems.

The euro briefly slipped on Thursday below 1.30 dollars, a key level that heralds further losses for the currency, reports indicate.

The figure is the lowest reported euro rate against the US dollar in the past five weeks.

Meanwhile, the euro plunged against the dollar in Asia on Friday, dragged by EU's rising debt problems.

Dealers blame the currency fall on concerns about the Eurozone's sovereign debt problems as well as reported optimism for recovery in the US economy.

Asian stocks have eased after stocks on Wall Street slipped on Thursday. This comes as investors await the release of fresh US labor data.

Recent speculations about Spain and Portugal's need for a financial rescue package to deal with their debt crisis have added to lingering debt worries across the EU.

Recently, the two EU states raised their borrowing costs, causing fresh worries about the two countries' debt issues.

Experts suggest that the euro could collapse and leave the EU in an economic and political catastrophe, unless its 'unbridled' banking system comes under control.