Euro falls to 7-week low against dollar

AP News
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Posted: Nov 23, 2011 3:26 PM
Euro falls to 7-week low against dollar

The euro fell sharply against the dollar Wednesday after Germany didn't raise as much money as hoped at a bond auction.

The weak demand for German bonds fueled fears that Europe's largest economy could be sucked into the region's growing debt crisis.

"This is the worst-case scenario as it is hard to see how the euro zone can survive if Germany also suffers a liquidity attack like Spain, Italy, Greece etc.," said Kathleen Brooks, a research director at FOREX.com.

Germany said Wednesday that its latest $8.1 billion auction of 10-year bonds was met with only 60 percent demand. It said that weak demand was due to an "extraordinarily nervous" market.

The euro fell to $1.3326 late Wednesday from $1.3509 late Tuesday. The euro fell as low as $1.3318 earlier, its lowest point since Oct. 6.

The dollar was also stronger against most other currencies. The British pound fell to $1.5506 from $1.5628.

The dollar rose to 77.35 Japanese yen from 76.97 Japanese yen, to 0.9207 Swiss franc from 0.9147 Swiss franc and to 1.0485 Canadian dollar from 1.0372 Canadian dollar.