Alexa

Euro tumbles to 6 1/2 week low against dollar

Euro tumbles to 6 1/2 week low against dollar

Investor fears that the European debt crisis could spread to larger economies are weighing on the euro.
In morning trading Monday in New York, the euro fell to $1.4057 from $1.4248 late Friday. It touched as low as $1.4024, the weakest point since May 25.
The dollar is stronger against the British pound but weaker versus the Japanese yen.
European officials are talking about how to best extend more aid to indebted Greece. Fears that Greece could soon default has made euro trading volatile since late spring.
But now investors are anxious about the health of Italy, Europe's No. 3 economy. Its borrowing costs are rising. The European funds available for rescue loans might not be enough to aid Italy if needs a bailout.