NEW YORK-The intensifying European debt crisis drove the euro down to its lowest level against the dollar since January. The euro traded at US$1.3043 late in New York yesterday. Earlier it sank as low as US$1.3008. Late on Monday, it was worth US$1.3186. European leaders agreed last week to tighten rules on government spending in an attempt to contain the debt crisis, but investors remain wary of possible defaults by heavily indebted countries like Greece. Leaders put off until March a decision on whether to add more money to a bailout fund for euro countries. Analysts say more is needed to help calm jittery bond investors.
The other hope for saving the euro has also, for now, disappointed investors. Some had hoped that the European Central Bank would step up its buying of struggling countries' debt, but the ECB has limited its debt purchases and ECB President Mario Draghi indicated at the bank's last meeting Thursday that large-scale bond buying was unlikely.
AP
