Euro goes down to 4 year low against US dollar although stock rise early

Posted by admin on May 17, 2010

Euro bounced off the four year low in the early day although stock indexes have moved slightly up. Euro goes down to $1.2234 from $1.23 because of the growing fears about Europe’s debt crisis.

Minoru Shioiri, chief manager of FX trading at Mitsubishi UFJ Morgan Stanley Securities, told CNBC.com that “People have no idea what it will take to get out of this situation, as they have seen the euro plunge despite a massive rescue package,”. He also told, “There are very big concerns about the eurozone.”

Trichet said in German newspaper Der Spiegel that, “In the market, there is always a danger of contagion — like the contagion we saw among the private institutions in 2008,”