Euro falls below $1.25 on Greek fears

AP News
Posted: May 25, 2012 3:59 PM
Euro falls below $1.25 on Greek fears

The euro fell below $1.25 for the first time Friday in nearly two years on concerns that Europe won't be able to keep Greece in the single currency union.

The euro fell to $1.2518 late Friday from $1.2525 late Thursday. The euro fell as low as $1.2495 in morning trading, its lowest level since July 2010. It fell 2 percent this week and over 5 percent so far this month.

Traders are concerned that Greece will have to leave the euro if parties opposed to the terms of the country's financial rescue win an election next month. Those parties were favored in early May, but Greek leaders were unable to form a new government.

The uncertainty could push the euro as low as $1.20 ahead of the June 17 Greek elections, Kathy Lien, director of research at currency trading company GFT said in a note to clients.

In other trading Friday, the dollar rose to 79.66 Japanese yen from 79.58 yen. It also rose to 0.9595 Swiss franc from 0.9590 Swiss franc and to 1.0295 Canadian dollar from 1.0282 Canadian dollar.

The British pound rose to $1.5658 from $1.5652.