2013-04-16 10:05:26 +02:00

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financialcrisis
8214488
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# Euro falls amid continuing debt crisis fears
## The euro declined as fears about the region's sovereign debt crisis
continued to weigh on the single currency.
![Euro falls amid continuing debt crisis fears][1]
The euro sign outside the European Central Bank headquarters in Frankfurt.
Photo: BLOOMBERG
3:14PM GMT 20 Dec 2010
[Comments][2]
The euro dropped to a two-week low against the dollar after the European
Central Bank warned it had "serious concerns" about the **[laws governing
Ireland's bail-out][3]** of its banking system.
The comments followed credit rating agency Moody's decision to slash Ireland's
credit rating last week.
Investors also turned to German government bonds as a safe haven, sending the
price up and the yield below 3pc for the second day in a row. The gap between
the yield on German government bonds and their Irish and Portuguese
equivalents widened.
The euro was down 0.2pc to $1.3158 in lunchtime trading, after falling as low
as $1.3125.
The yield on 10-year German government bonds was 3pc, compared with 8.65pc on
Ireland's 10-year bonds.
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20 Dec 2010
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20 Dec 2010
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20 Dec 2010
* [Euro rises as China supports EU debt action][7]
21 Dec 2010
* [Self-righteous Germany must accept a euro-debt union or leave EMU][8]
19 Dec 2010
* [Irish downgrade hits world markets][9]
17 Dec 2010
The cost of insuring French government debt rose to a record, as some traders
speculated the country could be at risk of losing its AAA credit rating.
A string of neagtive announcements from the ratings agencies about various
eurozone countries' debt levels have added to the pressure caused by the bail-
outs of Greece and Ireland.
Moody's also said last week it may downgrade Spain's credit rating again.
However the Organisation for Economic Cooperation and Development (OECD) said
today that Spain will meet its deficit reduction goal next year, even if
growth does not meet the 1.3pc target set by the government.
The OECD also said it doesn't believe that government support for the
country's banks would put the Spain's solvency at risk.
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## [Financial Crisis][15]
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### [Q&A: What is the Independent Commission on Banking?][30]
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