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Euro falls to 11 1/2-month low against dollar

Euro falls to 11 1/2-month low against dollar

The euro fell to an 11 1/2-month low against the dollar Wednesday on fears that Europe's debt crisis is far from over.
The European Central Bank said Wednesday that the continent's banks parked a record $590.72 billion overnight at the bank, surpassing the previous record set only Monday. Those figures reveal that banks still distrust the financial system and would rather hold money at low interest rates at the ECB than lend to each other.
Even successful bond auctions in Italy failed to lift the euro against the dollar. Demand for Italian bonds was strong, and the country was able to pay lower interest rates. That's a sign that investors are more confident about Italy's ability to repay its debt. The country recently passed a big package of budget-cutting measures.
The euro fell to $1.2946 in afternoon trading Wednesday from $1.3069 late Tuesday. It fell to $1.2910 earlier, its lowest point since Jan. 10.
Trading was quieter than normal. Many traders go on vacation the week between Christmas and New Year's.
In other trading, the British pound fell to $1.5465 from $1.5670. The dollar rose to 77.93 Japanese yen from 77.85 Japanese yen, to 0.9418 Swiss franc from 0.9340 Swiss franc and to 1.0230 Canadian dollar from 1.0183 Canadian dollar.


Updated : 2021-04-14 06:40 GMT+08:00