29th December 2011
Those monitoring the stocks of the euro following turmoil in Europe may have noticed a drop in the currency on the markets this morning (December 29th).
Compared to the yen and the dollar, the euro fell to a ten-year low, causing investors to be nervous ahead of an Italian bond sale, Reuters reports.
Carl Hammer, currency strategist at SEB in Stockholm, said: "The auction yesterday was good but today's will be more of a barometer for what appetite will be at the start of next year."
He added that Italy has a massive refinancing need early next year, which is causing worry among forex markets.
The euro was down 0.1 per cent at $1.2922 in Asian trade, its lowest level since January 10th, when the euro hit a low of $1.2860 for the year.
Some encouragement was found at auctions of short-term Italian debt yesterday, but today's stocks are set to be a harsher test.
A report published by Standard & Poor's recently suggested that the eurozone could plummet into a second recession in the coming year.
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