Tuesday, January 19, 2010
Celebs in Avatar Get up
The euro has tumbled against other major currencies Tuesday as nerves over Greece's fiscal stress keep building while German economic expectations have fallen short of economists' views.
The currency has tumbled by some 0.5% against the dollar in European trading hours to trade at a low of $1.4320. It has also plunged by nearly 1% against sterling to hit GBP0.8730, while it has edged lower against the generally struggling yen, sinking by 0.6% to Y129.90.
The move comes even despite comments from Greek Finance Minister George Papaconstantinou, who said Tuesday that the other 15 euro-zone finance ministers had welcomed Greece's plans to slash its budget deficit.
Data from the ZEW research institute showing that expectations for Germany's economy had darkened further in January added to the gloom.
"I would not read too much into the ZEW as there are a number of other indicators that give a more accurate picture of how the euro-zone economy is doing. Still, the euro is taking a hit from it," said Phyllis Papadavid, a currencies analyst at Societe Generale in London.