NEW YORK-The euro plunged below $1.24 for the first time in nearly two years as traders fret over Spain's economy. The yield on Spain's ten-year bonds jumped above 6.7 per cent yesterday, the highest since November. That's a sign that investors are concerned about the country's ability to pay down its debt.
Greece, Portugal and Ireland were forced to get financial lifelines after their borrowing rates rose above seven per cent. The euro sunk to US$1.2387 in morning trading, its lowest point against the dollar since July 1, 2010. It was worth US$1.2487 late Tuesday. The British pound fell to US$1.5532 from US$1.5634. The dollar rose to 0.9683 Swiss franc from 0.9618 Swiss franc. The dollar fell to 78.91 Japanese yen from 79.51 yen.
AP
