As the European economy suffers from heavy financial burdens and Germany moved to ban naked short-selling of shares, the Euro has collapsed to a new four-year low against the US dollar in international currency markets.
The Euro collapsed by 1.7 per cent in New York to a rate of USD 1.216 per euro on Tuesday. This is the lowest rate of exchange since back in April 2006. The Euro has also slided against the value of Japan’s Yen by over 2 per cent.
The German move to ban naked short-selling came amid an attempt to calm market volatility in the eurozone. Experts believe the new euro collapse has been caused as a result of fears that new austerity measures in the European Union threaten growth.
Many analysts warn that the Greece debt crisis could hit other countries in Europe, including Spain, Italy and Portugal.
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