FX: Euro plunges against dollar, hitting 7-month low
The euro continued to plunge against the U.S. dollar on Thursday, hitting a 7-month low amid new fears over the euro zone periphery's fiscal health and ahead of the European Central Bank's interest rate decision.
EUR/USD hit 1.3826 during early European trade, its lowest rate since June 22; it subsequently rebounded to 1.3843. The pair was likely to find support at 1.3747, the low of June 16, and resistance at 1.4026, Wednesday's high.
On Wednesday, the European Union's economics commissioner, Joaquin Almunia, said that fears had spread beyond Greece to other euro zone countries, chiefly Spain and Portugal, where public finances were hurtling out of control.
The European Central Bank, meanwhile, was set to announce on Thursday its latest decisions on interest rates, after which its president, Jean-Claude Trichet, was due to speak at a press conference.
Investors also awaited the release of key U.S. data on Initial Jobless Claims, an important indicator of overall economic health, and a report on non-farm productivity.
