Forex News – Euro steadies after 1 year low hit yesterday
The euro steadied on Wednesday after hitting a 1 year low against the US dollar on Tuesday after investors sold the struggling European currency over concerns that Greece and Portugal’s credit ratings had been downgraded.
The euro held firm at $1.3167 during the Asian session after falling 1.5% and hitting a low of $1.3144 the previous day when it looked like it was tumbling towards $1.29, but analysts predict further falls over the coming days.
The downgrade of Greece’s credit rating has increased traders concerns about whether Greece can finance its debts, which could undermine the credibility of the euro leading to further falls.