Euro Slump To Lowest Position 4 Months

The euro fell to its lowest in nearly four months against the U.S. dollaralong with the leadership vacuum in Greece prompting European officials toconsider the prospects for the early departure of a currency union member country.

The euro slipped 0.7 percent to 1.2823 U.S. dollar on Monday (5/14/2012)at 5 PM in New York, having earlier touched 1.2821 dollars, the lowest level since January 18, 2012. The euro also fell 0.8 percent to 102.39 yen and 102.23 yen which had touched its lowest level since February 16, 2012.

Meanwhile, the yen rose 0.1 percent to 79.85 dollars. The weakening of a common currency for 17 European countries the second day against the yen as the ratings agency Moody's cut its credit rating 26 Italian banks, Unicredit SpA and include Intesa Sanpaolo SpA. The agency sees revenues and a weakening economic outlook.

"The problem now is the Europeans have much trouble spots right now, and Greece is only one of it," said Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman & Co., in New York on Monday.

Marc says, the Greeks wanted to remain in the euro zone, but the local government wants to renegotiate the fiscal pact. Meanwhile, the dollar index (DXY) rose for the day-to-11 and the British pound rose to its highest level against the euro since 2008 as investors sought refuge.