Euro falls to dollar amid ECB meeting

The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms.

The euro has tumbled to its lowest rate against the dollar since June, amid an upcoming meeting by the European Central Bank (ECB) to discuss the eurozone debt crisis.

The European single currency dropped to USD 1.31605 on Tuesday, which was its lowest exchange rate against the US currency since July 22, as the dollar index gained 0.25 percent to 82.281.

Investors said the US Federal Reserve will withdraw stimulus at its policy meeting on September 17-18, an act which would affect the worldwide financial sector.

This is while, the ECB plans to meet on Thursday to discuss methods in keeping monetary policy loose.

Å“Investors do not want to be long euros heading into the ECB meeting this Thursday,” said Geoffrey Yu, an economist at UBS financial services, adding that Å“We haven’t heard for a while from (President Mario) Draghi. We expect him to say conditions remain soft despite an improvement in the data and pledge to keep rates low.”

There are serious worries that the eurozone debt crisis — which has already resulted in bailouts for Greece, Ireland and Portugal — could also hit the far-larger economies in the European Union.

The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, triggering incidents of social unrest and massive protests in many European countries.

GMA/PR

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Republished from: Press TV