Euro falls to record low against franc
The euro has fallen to a record low against the safe-haven Swiss franc, hit by a barrage of negative news from the eurozone that could lead to further declines.
At noon on Monday, one euro could be bought for SFr1.23. Eighteen months ago, the Swiss had to pay around SFr1.50 for a euro. In August 2010, the franc breached SFr1.30 for the first time since the introduction of the European currency in 1999.
Investors had ample reasons to sell the euro, given doubts about Spanish austerity measures after the ruling Socialist party was defeated in regional elections, an outlook downgrade to Italy’s credit rating and escalating speculation over some sort of Greek debt restructuring.
Investors reacted to these events with a burst of risk aversion, shifting funds into United States government debt, gold and the dollar.
On Monday the euro dropping below $1.40 for the first time in two months.
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