World Markets Tumble, Dollar Hits New Low

Euro hits $1.60 as banks lead declines
By Jason Farago,  Newser Staff
Posted Jul 15, 2008 7:32 AM CDT
A broker at the stock exchange in Frankfurt, central Germany, watches trading Tuesday, July 15, 2008. European and Asian stock markets fell sharply Tuesday as investor confidence in the U.S. financial...   (AP Photo/Daniel Roland)
camera-icon View 3 more images

(Newser) – World stocks hit their lowest level since 2006 today as credit-market losses and weakening consumer confidence sent shares falling, reports Bloomberg. The big banks, from UBS in Europe to Cathay in Asia, led declines. The MSCI World Index, Morgan Stanley's indicator of global finance, has now slid into bear market territory, having lost 21% of its value since October.

Meanwhile the dollar fell to a record low against the euro, climbing back above $1.60. The dollar's recent recovery was erased as the woes of Fannie Mae and Freddie Mac led investors to bail. The greenback took a beating elsewhere: the pound went up above $2 for the first time since April, and in Tokyo the dollar fell below 105 yen.