LONDON: The euro has dropped to a nine-year low against the US dollar, as investors fears over growth prospects continued to rise.
On Monday morning the currency dropped 1.2% in value to €1.19, the weakest spot exchange rate since early 2006.The pound was worth almost €1.28 on spot markets – helping UK travellers to the Continent.The euro sell-off comes amid doubts that a new quantitative easing (QE) programme, hinted at by European Central Bank (ECB) boss Mario Draghi, will help the ailing currency.
Concerns have also been raised about a Greek left-wing government taking power – cutting austerity reforms – just months after it clawed its way out of a lengthy recession.The latest sell-off comes as a poll by the Financial Times of 32 leading eurozone economists puts doubt on the effectiveness of any QE programme by the ECB.A majority believe the ECB will launch a major recovery plan this year, as growth and inflation both continue to weaken in the 19-nation currency bloc.Some put a possible QE programme at €500 (£390bn) while others believe it may top €1tn (£780bn).
