Euro falls vs dollar on European debt worries

AP News
Posted: Nov 17, 2011 3:49 PM
Euro falls vs dollar on European debt worries

The euro fell to a five-week low against the dollar Thursday as traders worried that Europe's debt crisis is spreading to larger countries.

Borrowing rates in Spain spiked to their highest level since 1997, a sign that investors are worried that the country may have trouble paying its debt. Many economists believe that Spain's higher rates are unsustainable over the long term. Rates in France and Italy have also jumped higher this week.

Greece, Portugal and Ireland were forced to seek a bailout after their borrowing rates rose above 7 percent. The rates in Spain and Italy were hovering near 7 percent Thursday.

The euro fell to $1.3466 in late trading Thursday from $1.3512 late Wednesday. The euro fell to $1.3421 earlier in the day, its lowest point since Oct. 10.

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In other trading, the British pound fell to $1.5758 from $1.5776. The dollar rose to 0.9198 Swiss franc from 0.9170 Swiss franc and to 1.0280 Canadian dollar from 1.0198 Canadian dollar. The dollar was practically unchanged at 76.95 Japanese yen. It was worth 76.94 Japanese yen late Wednesday.