The euro's sharp descent against the dollar may have further to run as a potential emerging-market crisis threatens more trouble for European banks, and the euro may even return to parity with the dollar.Rico says he doesn't have any euros, so it's only a theoretical issue for him, but it will surely change things for a lot of people who do.
The euro fell to a two-and-a-half-year low against the dollar Tuesday. The euro has declined 22 percent since hitting a record above $1.60 in mid-July, falling more than 11 percent this month.
The euro has sold off sharply in recent months, with economic growth prospects for the 15-nation euro zone deteriorating sharply after the financial crisis that started in the United States spilled over to the rest of the world.
Several European banks have been bailed out, and fears are growing that the unprecedented efforts by governments to shore up the financial system will not be enough to prevent Europe from falling into recession.
30 October 2008
1:1, hee, hee
The International Herald Tribune says the euro is falling like the price of gasoline:
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