Euro falls vs dollar as Spain slips into recession

AP News
Posted: Apr 30, 2012 3:42 PM
Euro falls vs dollar as Spain slips into recession

The euro fell against the dollar Monday after Spain confirmed that is in another recession.

Traders are worried that the country won't be able to cut its budget deficit and may need a bailout. The euro zone's fourth-largest economy may have much more debt than the continent's bailout funds could handle.

The euro fell to $1.3243 late Monday from $1.3259 late Friday.

Spain says its economy shrank 0.3 percent in the first quarter. This is Spain's second recession in three years.

Adding to Spain's troubles, ratings agency Standard & Poor's downgraded the debt of 11 Spanish banks Monday. Late last week, S&P downgraded the country's credit rating, citing a worsening budget deficit, worries over the banking system, and poor economic prospects.

In other trading Monday, the British pound fell to $1.6232 from $1.6269. The dollar rose to 0.9073 Swiss franc from 0.9062 Swiss Franc and to 98.73 Canadian cents from 98.09 Canadian cents.

The dollar fell to 79.81 Japanese yen from 80.39 yen.