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| Version 2 | Version 3 |
|---|---|
| Economic gloom depresses the euro | Economic gloom depresses the euro |
| (about 8 hours later) | |
| The euro has hit a fresh one-year low against the US dollar amid renewed worries about the health of the European economy. | The euro has hit a fresh one-year low against the US dollar amid renewed worries about the health of the European economy. |
| The single currency fell as low as $1.3882 in Thursday trading - its lowest level since September 2007. It later edged up slightly to $1.3942. | |
| An increasingly gloomy outlook for the eurozone region has hit the euro hard. | An increasingly gloomy outlook for the eurozone region has hit the euro hard. |
| The European Commission believes some countries in the European Union are on the brink of recession. | The European Commission believes some countries in the European Union are on the brink of recession. |
| The dollar, meanwhile, has benefited as US investors have sold assets in emerging markets, preferring to hold their own currency during a time of global economic uncertainty. | |
| "We continue to see investors repatriating money from overseas holdings given how uncertain the global environment has become," said Sophia Drossos, a currency strategist at Morgan Stanley in New York. | |
| European jitters | European jitters |
| The commission has said that three countries - the UK, Germany and Spain - would see two negative quarters of economic growth in a row this year and would therefore be considered to be in recession. | |
| The commission also downgraded its growth outlook for the second time this year. | The commission also downgraded its growth outlook for the second time this year. |
| It said the 15-nation eurozone would now grow by 1.3% this year, against previous projections of 1.7%. | It said the 15-nation eurozone would now grow by 1.3% this year, against previous projections of 1.7%. |
| As a result, some analysts are predicting that the euro will continue to be weak and fall to around $1.30. | |
| "As Europe and even emerging economies struggle from the fall-out of the sub-prime crisis, there is sentiment that the US is doing relatively well compared with the rest of the world," said currency analyst Saburo Matsumoto at Sumitomo Trust Bank. | "As Europe and even emerging economies struggle from the fall-out of the sub-prime crisis, there is sentiment that the US is doing relatively well compared with the rest of the world," said currency analyst Saburo Matsumoto at Sumitomo Trust Bank. |