Eurozone: Euro drops to its lowest level in almost two years
June 1, 2012
On 31 May, the U.S. dollar (USD) traded at 1.24 per euro (EUR), having gained 6.4% compared to the end of the previous month. As a result, the EUR has now weakened an accumulated 4.5% versus the USD on a year-to date basis. At its current level, the EUR is trading 13.8% lower than in the same month last year and is at its lowest level in almost two years. The euro weakened this month amid continued uncertainty regarding the evolution of the debt crisis in the Euro area peripheral countries, in particular in Spain and Greece ahead of the parliamentary elections scheduled for 17 June and the possibility of a Greek exit from the Eurozone if the parties opposed to the terms of the bailout achieve a majority in parliament. Currently, Consensus Forecast panellists.
Author: Armando Ciccarelli, Head of Data Solutions