Euro Dives Below $1.30

Italian bond sale drives price south
By Kevin Spak,  Newser Staff
Posted Dec 14, 2011 7:52 AM CST
In this Dec. 7, 2011 photo, a currency exchange board showing prices for the Euro, Japanese Yen, and Mexican Peso is displayed in a New York bank.   (AP Photo/Mark Lennihan)

(Newser) – The euro has dropped below the $1.30 mark for the first time since January, after a less-than-ideal Italian bond offering stoked fears over the Europe's ongoing debt woes. The currency at times sagged as low as $1.2994 in European trading, after swinging between $1.2989 and $1.3038 last night in New York, the Wall Street Journal reports. And a research note from Commerzbank predicts it'll keep on dropping today.

"Any recovery to the upside might soon be followed by another plunge downwards," the note forecasts. "There is much scope to the downside all the way to the January low at $1.2860." The plunge follows a $3.91 billion Italian bond sale in which investors demanded a whopping 6.47% yield—the highest since the euro was created. (Read more euro stories.)

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