Euro falls to 3-month low vs dollar on Greek fears

AP News
Posted: May 09, 2012 3:36 PM
Euro falls to 3-month low vs dollar on Greek fears

Growing fears about Europe's debt crisis pushed the euro to a three-month low against dollar Wednesday.

The euro fell to $1.2945 in afternoon trading from $1.3030 late Tuesday. The euro fell as low as $1.291 earlier, its lowest point against the dollar since Jan. 23.

Traders are worried that Greece may have to leave Europe's shared currency as Greek leaders failed to create a new government Wednesday.

One party leader said Greece should no longer have to stand by its commitment to cutting costs because voters rejected those terms. Those comments are troubling because Greece needs to cut spending in order to get its next batch of bailout money.

Meanwhile, Spain's 10-year borrowing rate soared above 6 percent, a sign that investors are concerned about the country's finances.

In other trading, the British pound fell to $1.6142 from $1.6165. The dollar rose to 0.9277 Swiss franc from 0.9219 Swiss franc and to 1.0012 Canadian dollar from 99.86 Canadian cents.

The dollar fell to 79.68 Japanese yen from 79.79 yen.