CRISIS CONTINUES

07.23.12

Euro Drops to 11-Year Low

Chris Ratcliffe, Bloomberg / Getty Images

The euro reached its lowest level since 2000 Monday, making it 1 percent against the yen. The slip seems motivated by fear of an impending bailout for Spain. This also brought yields for Spanish bonds to their highest level since the euro was created. Against the dollar, the European Union currency also dipped to $1.2093, nearing 2010’s low of $1.1876. “With such strong risk version it is the yen and the dollar that will keep gaining against risk currencies,” said the currency analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo. “The Spanish scenario hasn’t been priced in yet.” At least one Spanish region confirmed over the weekend that it will ask for financial aid, and around six others are expected to follow suit.