Euro falls to 7-month low on fear of Greek defaultThe euro has fallen to a 7-month low against the dollar on fears of a possible debt default by Greece, which uses the euro.
By: Daniel Wagner, Associated Press
WASHINGTON — The euro has fallen to a 7-month low against the dollar on fears of a possible debt default by Greece, which uses the euro.
Investors fear that Greece could default on its financial obligations as its economy worsens. Senior German officials have hinted in recent days that Greece could undergo an orderly bankruptcy to stem the crisis. A default by any nation using the euro might upend the European economy, making the shared currency less attractive.
At 11:40 a.m. Eastern time, the euro has fallen to $1.3650 from $1.3656 late Friday. It had earlier hit $1.3495, the lowest level since February. The euro started the month around $1.43.
The British pound is also weaker, while the dollar is falling against the Japanese yen.
Copyright 2011 The Associated Press.