Source: www.npr.org - Monday, January 05, 2015 The Euro Fell To A 9-Year Low Against The Dollar; Here's Why January 05, 2015 10:55 AM ET Krishnadev Calamur Twitter The euro sank to a nine-year low Monday as new doubts surfaced about Greece's commitment to the common currency bloc. Markus Schreiber/AP The euro fell today to a nine-year low against the dollar amid continuing doubts over Greece's future in the currency union and renewed prospects of monetary easing in the eurozone, the club of 19 EU countries that share the common currency. The euro fell 1.2 percent against the dollar to $1.1864 — the lowest level since March 2006; it later recovered to $1.19370. Here's why this is happening: Political Instability In Greece: Greeks vote in elections Jan. 25, and polls show the left-wing opposition Syriza party with a lead. The group opposes the IMF- and EU-mandated austerity plan imposed after Greece's economy was bailed out. This is prompting fears a Syriza victory means Greece could exit the eurozone. The euro's slide today came after an article in the German news magazine Der Spiegel that said Germany could allow Greece to drop out of the currency union. Possible Quantitative Easing: Europe's economy has struggled to recover from the global recession, and there is speculation the European Central Bank could introduce quantitative easing to stimulate the eurozone. The ECB has already lowered interest rates to record lows, and it could now embark on a program to buy billions ofAll Related
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