The euro hit its lowest level against the dollar in 16 months yesterday as investors sold the single currency amid continuing concerns about the ability of eurozone countries to raise funding.
Decent demand for French debt at a morning auction did not lend support to the euro, which fell to a low of $1.2779, a loss of 1.2 per cent on the day. French 10-year bond yields were higher as investors remained concerned that the country’s triple A credit rating was under threat.
The dollar rose to its highest level in nearly a year against other major currencies, with better than expected US jobs data for December helping to send the dollar index up 1 per cent to 80.9.
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