Euro falls on dollar for seventh consecutive day
Published: 8 May at 6 PM
The euro lost ground on the dollar for the seventh consecutive session on Tuesday on concerns that a change of president in France and political uncertainty in Greece could threaten austerity plans viewed as key to solving the debt crisis in the eurozone, reports Reuters.
The euro dropped below the psychological $1.30 level after the Greek left coalition party’s leader said that the country’s commitment to the EU/IMF rescue deal was now null and void. The two main pro-bailout parties in the Mediterranean nation were unable to win a majority during weekend elections, leaving questions regarding Greece’s ability to stay clear of bankruptcy and remain in the euro.
Elsewhere, Francois Hollande, the new socialist French president, has supported an approach to combat the debt crisis by focussing more on growth. This could create tensions among the main powerhouses of the region, with Germany intent on fiscal austerity.
The single currency last traded at down by 0.3 per cent at $1.3008, rebounding from its session low of $1.2988, higher than its Monday trough of $1.2955, which was the lowest it has traded since the end of January. Technical support lies in the $1.2955/73 area, which are the lows from the previous session and 16 February. Falling below this could see the single currency trading at its 2012 low of around $1.264.