Euro falls to 10-week low against dollar

AP News
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Posted: Dec 12, 2011 3:51 PM
Euro falls to 10-week low against dollar

The euro fell to a 10-week low against the dollar Monday on worries that Europe's new financial pact won't be enough to stop the region's growing debt crisis.

The euro fell to $1.3186 in late trading Monday from $1.3370 late Friday. It fell to $1.3161 earlier, its lowest point since Oct. 4.

The 17 nations that use the euro agreed to a deal Friday that allows a central European authority to oversee their budgets and impose tighter controls on spending. The deal was announced after a two-day summit of European leaders in Brussels.

Two credit ratings agencies, Moody's and Fitch, said Monday that the deal isn't enough to reduce debt pressure in Europe. Moody's said that it is still considering lowering the credit ratings of all European Union countries. It also said that last week's summit produced "few new measures."

Fitch said Monday that "it seems that a `comprehensive solution' to the current crisis is not on offer."

In other trading Monday, the British pound fell to $1.5582 from $1.5662 late Friday. The dollar rose to 77.91 Japanese yen from 77.54 Japanese yen, to 0.9370 Swiss franc from 0.9241 Swiss franc and to 1.0262 Canadian dollar from 1.0186 Canadian dollar.

The U.S. currency was also stronger against currencies in Australia, New Zealand, South Korea, Hong Kong and Latin America.