Friday, May 25, 2012

Euro plunges to its lowest level in nearly two years as economy takes another turn for the worse

The euro crashed to a 22-month low yesterday as the European economy took another dramatic turn for the worse.

Figures showed the biggest slump in private sector business across Europe this month for nearly three years.

The dire news sent the euro tumbling against the dollar to $1.25 – its lowest level since July 2010. Against the pound it was worth little more than 80p.

The latest gloom came against a backdrop of a continuing sense of crisis over Greece as Berlin and Paris remained at loggerheads on what to do, despite the emergency Brussels summit that ended in the early hours of yesterday morning.

Market experts warned that Greece would leave the single currency at the beginning of next year. Mario Draghi, president of the European Central Bank, said the future of the European Union was at risk. Read More