Dollar hits two-month low against euro

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134998§ionid=3510213


The US dollar has plunged to a two-month low against the euro after reports of a weaker economic outlook added to investors' worries about a US recovery.

The single European currency has risen more than six percent in eight weeks, to $1.29 during late trading on Thursday, CNN reported.

The dollar fell after the US Federal Reserve issued a report predicting a slower economic recovery.

Boris Schlossberg, director of currency research at GFT Forex holds the same opinion, saying "Economic data has hardly been robust and has not been US-supportive," adding that "...the dollar is really sinking against the euro, yen and pound."

The euro, meanwhile, has gotten a boost as strong demand at Spanish and Greek auctions this week eased worries over the eurozone's debt problems.

"The solid results gave investors confidence that sovereign debt worries are evaporating," said Schlossberg.

The US is still trying to recover from the 2008 financial crisis, triggered by a mortgage crisis in the housing market that rapidly spread to other sectors of the US economy, causing many to lose their homes and their jobs.

The current unemployment rate in the US is 9.5% and More than one million American households are likely to lose their homes to foreclosure this year.