Euro Down to 18-Month Low
The escalating concern over euro zone sent the single currency down to 1.2359, the lowest level last seen 18 months ago when US bank giant Lehman Brothers collapsed.
A 750 billion euro bailout plan finally worked out by EU and IMF last weekend only gave a brief break, Greeks’ protest draws market attention back to the debt-troubled euro zone. Still there are arguments arose between euro zone countries. The President of France said that France would act like Germany unless Germany acts more like France. Developed nations are going to keep printing money.
Harsh austerity measures Greece and Spanish agreed to impose in exchange for outside support result in social unrest and may impede economic recovery in the short term, however, they are life saving pills now, but just bitter to swallow. Till the panic fades, the euro is likely to be locked in this downward path.