Euro falls to 7 1/2-week low against dollar

AP News
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Posted: Nov 25, 2011 5:58 PM
Euro falls to 7 1/2-week low against dollar

The euro fell to 7 1/2-week low against dollar as Italian borrowing rates soared, raising fears that Europe's debt crisis is spreading to the region's larger economies.

Italy had to pay an average yield of 7.814 percent in two-year bonds, nearly double what the country had to pay a month ago. The higher rates are a sign that investors are worried the country may not be able to pay its debts.

The euro fell to $1.3230 late Friday from $1.3333 late Thursday. The euro fell to $1.3211 earlier, its lowest point since Oct. 4.

The euro has fallen about 2.2 percent this week on concerns about Europe. Those concerns escalated Wednesday after Germany said it didn't raise as much money as hoped at a bond auction. Germany is Europe's strongest economy, and investors worried that it could be sucked into the region's growing debt crisis.

The dollar was also mostly higher against other currencies. The British pound fell to $1.5433 from $1.5489. The dollar rose to 77.76 Japanese yen from 77.15 yen and to 0.9318 Swiss franc from 0.9199 Swiss franc.

Meanwhile, the dollar rose to 1.0503 Canadian dollar from 1.0468 Canadian dollar.