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Euro Sags to One-Year Low
The euro dropped to a one-year low of $1.31 today on speculation that the European Central Bank will decide this week to inject more money into the eurozone's weak economy.
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The euro dropped to a one-year low of $1.31 today on speculation that the European Central Bank will decide this week to inject more money into the eurozone's weak economy.
The ECB will meet on Thursday to discuss ways to bolster the region's recovery. Analysts say a decision is badly needed.
Heavy trades selling the euro suggest the currency's value could suddenly jump if the central bank fails to take action, the Associated Press notes. The news service points out that eurozone inflation and growth both have dropped to virtually zero, threatening the region with an unprecedented triple-dip recession.
Keeping the euro relatively weak helps European exporters. It also makes imports more expensive, which could bolster inflation and lessen the risk of damaging deflation. Analysts fret that a lack of strong ECB action will strengthen the currency and worsen the region's economic outlook.
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