Euro Down With Debt Problem Worsening

The debt worries in Europe have affected the performance of the euro. The currency was down to one of the worst levels in the month. The fall of euro came shortly the new IMF Managing Director Christine Lagarde confirmed that they were not ready for the second Greece bail out. European stock also crashed over the fear that the crisis is going to extend to other countries within the euro zone.

There are worries over the debt crisis which originated in Greece which other investors believe that it will spread to other countries within the currency zone. This made other currencies to gain at the expense of the euro such as the US dollar and the Japanese Yen.

It was in a bid to avoid getting to the type of Greek crisis that finance ministers of Italy, Spain, Ireland and Portugal agreed to offer cheap loans to investors. They said the new measures as regards the modalities are in the offing and that they are likely to be announced later. The euro has being at the receiving end of the problems that have engulfed the euro zone. That is why the euro has being down to other currencies for two weeks running now.