The European currency yesterday fell on the international markets against the dollar, due to the publication of the data indicating the fall in Germany's industrial output and exports. These developments show that the largest economy in Europe is affected by the sovereign debt crisis in the Eurozone.
The Euro fell 0.5% at 10:23, on the New York market, to 1.2343 dollars. On August 6th, the Euro rose to 1.2444 dollars - the highest exchange rate since July 5th.
According to analysts, the fact that Germany is in trouble will cause the Euro to fall to 1.2280 dollars next week.
According to official data published by the Ministry of the Economy in Berlin, Germany's industrial output fell 0.9% in June, compared to the month of May, when it had grown 1.7%. Also, the Federal Statistics Bureau announced that German exports fell 1.5% in June, compared to May, when they increased 4.2%.
Yesterday's depreciation was caused by the fact that the ratings firm Standard & Poor's (S&P) revised to the downside the outlook for the rating of Greece's debt - from "stable" to "negative" - due to concerns that this country will need additional support from the European Union. Greece has a "CCC" rating from S&P.
A negative influence on the dynamic of the European currency also came from the fact that the Bank of England has cut its growth forecast for the economy of Great Britain. Whereas in May, the British Central Bank was anticipating a 0.8% annual growth, its estimate now shows stagnation (zero growth) due to the sovereign debt crisis which is affecting Europe.
A.V. (Translated by Cosmin Ghidoveanu) The European currency yesterday fell on the international markets against the dollar, due to the publication of the data indicating the fall in Germany's industrial output and exports. These developments show that the largest economy in Europe is affected
