Euro falls to 10-year low against Singdollar

Europe's single currency, the euro, was under siege again on Tuesday as investors reacted to the voter backlash against austerity measures in French and Greek elections at the weekend.

The austerity measures are designed to get the debt-laden euro zone back on the path to financial health.

But with these measures in doubt, the euro sank 1.8 Singapore cents to S$1.6241 on Tuesday, as it slumped back near the 10-year low of $1.62 it had reached at one point during Monday's trading.

'We expect downward pressure on the euro this week, and this could intensify if Greece fails to form a government and calls for another election' said Mr Athanasios Vamvakidis of Bank of America Merrill Lynch.

In late Singapore trading, the euro tested the US$1.30 psychological support level, as it fell back to its lowest level against the greenback in three months. It also traded at a 3 1/2 year low against the British pound of 0.805 sterling and a three-month low against the Japanese yen of 103.7 yen.

ORIGINAL SOURCE: http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_796869.html
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