Page last updated at 16:01 GMT, Wednesday, 20 January 2010

Euro falls against dollar and pound

Euro and dollar notes

The euro has hit a five-month low against the dollar as continuing concerns about the Greek economy weigh heavily on the currency.

The European single currency touched $1.4127 at one point on Wednesday, before recovering slightly to $1.4135.

Although Greece has passed measures to reduce its budget deficit dramatically, some analysts believe the country's financial woes will persist.

Against the pound, the euro also fell, with a euro worth as little as 86.85p.

This was also its weakest position against sterling since August.

"Greece's debt problems look to be deep-rooted and they cannot be resolved immediately," said Takeshi Makita at the Japan Research Institute.

High debts

The euro rose steadily against the dollar for most of 2009, but recent falls will come as a welcome relief to European exporters.

A weaker euro means their products become cheaper for overseas customers.

Earlier this week, eurozone finance ministers said they welcomed the efforts being made by the Greek government to reduce the country's huge budget deficit.

Last week, the Greek parliament approved a three-year plan to cut the country's deficit from the current 12.7% of its annual gross domestic product (GDP) to 2.8%.

Greece also plans to reduce its debts, which amount to 113% of its GDP.

The euro versus the dollar

Print Sponsor

Reuters UK Sterling falls after UK public finances data - 29 mins ago
Financial TimesUK debt rises above half national income - 42 mins ago
CNBC via MSN Money China growth worries weigh on emerging stocks - 1 hr ago
Arab News Euro plummets to 5-month low - 10 hrs ago
* Requires registration

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific