By: Barbara Zigah
The common currency Euro dropped to the lowest level in nearly a year versus the U.S. Dollar in Asian trading today. As reported at 7:27 a.m. (GMT), the Euro slipped to $1.2963, a decline of .1%; yesterday, the Euro saw its steepest single day loss in 11-months, losing more than 1.5% of its value.
The Greek debt problems continue to be the primary cause of the Euro’s woes, with investors and analysts alike doubtful that the IMF-imposed austerity measures, a requirement of the bailout package, can be faithfully implemented. Further adding to the downward pressure on the Euro are concerns that the debt problems will spread beyond the borders of Greece, Portugal and Spain.
A trend toward safe haven currencies helped the U.S. Dollar Index gain nearly .3% in the Asian trading session; earlier, the dollar index traded at 83.649 .DXY, the highest trade in nearly a year, before retreating to 83.549 .DXY. Versus the Japanese Yen, the U.S. Dollar rose .3% to trade at 94.98 Yen, close to the 8-month high struck Tuesday. Support for the U.S. Dollar is also attributed to the growing strength of the U.S. economy, evidenced by yesterday’s release of U.S. home sales showing a 5.3% increase in March, which surpassed analysts’ predictions.