Tuesday 22 November 2011

Euro foreign exchange rate gains on UK sterling and US dollar

The euro’s foreign exchange rate continues to make gains against UK sterling this morning, however remains weak against the US dollar as investors drive funds once again to the greenback over European debt fears that are hounding currency and stock markets.
 
Euro zone Crisis
Sharply divided European leaders faced mounting signs on Monday that the Euro zone debt crisis was striking at the heart of the EU.

The yields on Spanish 10 year bonds rose 0.20 percentage point, to 6.513 percent, on Monday, while the yield on Italian 10 year bonds rose 0.16 percentage point to 6.64 percent. In Germany, by contrast, yields on 10 year bonds were at 1.913 percent.

Higher bond rates continue to make debt interest repayments for Spain and Italy increasingly unaffordable and are adding fuel to the debt crisis.

The risk premiums on Spanish, Italian, French and Belgian government bonds rose as investors fled to safe haven German Bunds, while European shares fell more than 3 percent after Moody’s warned that France’s credit rating faced new dangers.

“This crisis is hitting the core of the euro zone. We should have no illusions about this.” European Economic and Monetary Affairs Commissioner Olli Rehn said.


Latest Euro Exchange Rates

As of 09.00 GMT one UK pound sterling bought 1.15770 euro’s, down 0.15 percent, whilst one euro bought 1.35350, up 0.35 percent, however the euro still remains at recent lows against the greenback.

Published on November 22, 2011 by Euro - Martine Kluge