Euro slips against dollar as debt-hobbled Greece runs into more trouble

Posted On: September 10, 2012
The value of the shared currency of the European Union dropped against the U.S. dollar on Monday, marking the first trading session in four days that the monetary unit has lost to the world's reserve currency, according to Bloomberg.

Pessimism about controlling the sovereign debt crisis grew after a political coalition in two-time bailout recipient Greece was unable to arrive at a pact to handle 11.5 billion euros-worth of spending cuts, also prompting the euro to slip against additional rival currencies.

"We've got a little dip in growth momentum globally," head of research Dan Dorrow with Faros Trading in Connecticut told the the news source. "Policy makers are catching up and getting less behind the curve. It's natural in this kind of situation that there's less risk of big downside."

A German court is scheduled to rule this week regarding whether its participation in the permanent bailout fund is constitutional.

The euro's losses to the U.S. dollar were minimized by conjecture about the U.S. Federal Reserve embarking on a stimulus program after an underwhelming jobs report late last week, according to Reuters.

Category: Industry News

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