The 17-nations shared currency reached its record low since 2009 as investors were uncertain whether the European official will be able to find the solution for Greece’s debt problems. The US dollar soared 2 percent versus the single currency as fears over euro zone’s sovereign debt problems rose. In the latest news Greece’s Prime Minister George Papandreou disclosed that there are chances that he would form a new government which is expected to result in hurdles in international aid for the country.
The dollar index DXY which measures the US dollar’s performance against its major six counterpart currencies surged to 75.630 as compared to 74.345 on Tuesday’s late trading hours.
The euro declined to1.4162 versus the greenback on Wednesday as compared to 1.4463 on Tuesday’s North American trading session. Wednesday’s fall is regarded as the biggest fall in a single day since March 2009.
The British Pound also witnessed selling pressure as investors were avoiding riskier assets. The Pound Sterling plunged to 1.6174 against the US dollar as compared to 1.6387 on late Tuesday. Most of the analysts believe that British Pound will follow the pattern of the euro.
Among other currencies the Australian dollar dropped to 1.0546 versus the US dollar on Wednesday as compared to 1.069 on Tuesday. The Australian currency dropped on the disappointing comments of Governor Royal Bank of Australia, Mr. Glenn Stevens.
As compared to the Japanese yen the US dollar gained to 80.95 on Wednesday as compared to 80.49 on Tuesday’s late trading hours.