21st December 2011
The euro has seen a drop in value this morning (December 21st) despite a slight initial rise following the announcement by the European Central Bank (ECB) that it has delivered €489.2 billion (£408.4 billion) in loans to beleaguered banks in the region.
Following an initial increase of nearly one per cent, the euro took a turn for the worse today and dipped below $1.3100 on the back of decreasing investor sentiment.
Analysts now fear further losses today if the single currency continues to trade at this level for a prolonged period.
"The euro's problems are not going to fade just because of the year-end and I wouldn't go into the new year and buy the euro strongly," Antje Praefcke, currency strategist at Commerzbank in Frankfurt, told Reuters.
Yesterday, the euro saw a slight gain in early trading following a successful bill auction by the Spanish government. This did not last long however, as ongoing debt fears served to put an end to the single currency's rally.
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