Topic: Foreign Exchange

The euro hit a near two-year low against the dollar on Thursday after dire German economic data suggested no country in the region was immune from crisis, alarming investors already fretting over the risk that Greece will leave the euro zone.

Egypt made history on Wednesday as it kicked off its first free presidential election and put its fragile democratic transition to the test. Just over 50 million eligible citizens are expected to cast their votes over the course of two days.

The euro slumped to its weakest level against the dollar in nearly two years on Wednesday on doubts a meeting of European leaders would calm fears of a disorderly Greek exit from the euro zone.

The euro fell on Tuesday as skepticism grew that an informal meeting of European leaders would yield much progress in tackling the debt crisis, with worries about Greek politics and Spanish banking problems expected to keep the currency weak.

The world has "hopefully" gotten through the worst in terms of what some analysts have called "currency wars," according to Chad P. Bown, senior economist at the World Bank's Development Research Group, Trade and International Integration.

The euro edged higher against the U.S. dollar on Monday as traders paused after driving the common currency to a four-month low and awaited a meeting of euro zone leaders this week.

Europe could strengthen its monetary union by giving European politicians the power to declare a sovereign state bankrupt and take over its fiscal policy, the former head of the European Central Bank said on Thursday in unveiling a bold proposal to salvage the euro. 

The euro climbed to its session high against the dollar on Friday as investors position ahead of a weekend meeting of leaders of the G8 major industrial economies after weeks of losses on ongoing concerns about Greece and instability in the Spanish banking system.

The euro held above a four-month low on Thursday, taking a breather from a sharp sell-off, although it was vulnerable to a further slide due to worries about the solvency of some Greek banks and fears the country may exit the euro zone.

The euro hovered near a fourth-month low against the U.S. dollar on Wednesday and more losses could be in store as investors feared a Greek exit from the euro zone that could result in other peripheral countries following suit.

The euro continued to fall on Tuesday with investors expressing strong aversion to risk after Greece failed to form a government and said it would hold new elections, raising the chances it could eventually exit the euro.

The euro fell to a nearly four-month low against the dollar on Monday on fears Greece could exit the euro and worries that weak industrial data signaled that Europe was heading for recession.

The situation in the euro zone has become so bleak that it is giving rise  to rumors the euro will be tied to the dollar at close to parity, a dramatic fall, which would have severe implications for the US and China. The Financial Times reports.

Walking through his high-ceilinged factory here, explaining the production of sheets of copper, M. Brian O’Shaughnessy comes across as a staunch advocate of manufacturing in America.

The euro traded roughly flat  against the dollar on Friday but hovered near a 3-1/2-month low as political uncertainty in Greece and hefty losses unveiled by U.S. bank JPMorgan Chase kept investors wary of placing bets in favor of the currency.