The Euro has dropped to $1.27 against the US Dollar for the first time in four months as the bailout of Cyprus and ongoing political uncertainty in Italy continues to batter demand for the single currency.
The shared currency went into free-fall against the majority of its peers after the Swiss bank Pictet & Cie. Announced that the ongoing banking crisis in Cyprus has ‘tarnished’ the Eurozone’s attractiveness to investors.
The Cypriot government is expected to announce what type of capital controls it will implement ahead of the banks reopening on Thursday. So far the banks have remained closed for over ten days making it the longest bank closure in history.
The currency is also struggling to shake off comments by Dutch finance minister and Eurogroup head Jeroen Dijsslbloem. The minister slipped up on Monday by saying that the Cypriot bailout would be used as a template for future bailout, comments that other Eurozone finance ministers denied was true.
“The Cypriot program is not a template, but measures are tailor-made to the very exceptional Cypriot situation,” according to a document agreed yesterday by representatives of Eurozone finance ministries, and intended as a guide for explaining the decision to the public.
The latest batch of economic data has also helped put the boot into the currency as an index of executive and consumer confidence fell to 90 in March from 91.1 in February.
Current Euro Exchange Rates
As of 11:20 am
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8464
The Euro to US Dollar exchange rate is currently trading in the region of 1.2788
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.2247
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.5297
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