19.05.2010

Yesterday, it was announced that the euro has plummeted to its lowest level against the US Dollar in four years - falling to below USD1.22 for the first time since April 2006.

The eurozone's single currency fell during afternoon trading in New York to USD1.216, before rallying. The decline came after Germany announced plans to ban naked short-selling of shares.

Traders fear that the austerity measures being put in place in many eurozone countries will hit growth. Despite the huge sums of money pledged in support for eurozone countries, severe measures are needed to cut budget deficits and debt in many European economies.