When the dollar was being hammered and hitting new lows, it never felt completely right. Sure, it was easy to see the charges against the dollar but it was just as easy to see equally bad news in euro-land. A one-to-one ratio sounds about right so there's still plenty of room to drop for the euro. Besides the heavy debt in the region, the other concern is that the strict austerity programs will prevent any growth in eurozone countries. BBC:
The euro has fallen to a four-year low against the dollar, after being hit by renewed fears over the strength of the eurozone economy.
The euro fell to $1.2237, while one pound was worth 1.1702 euros.
Despite the huge sums of money pledged in support for eurozone countries, severe austerity measures are needed to cut budget deficits and debt.
This is affecting the value of the euro as analysts worry the cuts will hold back economic growth in the eurozone.
