Euro plummets to session low against dollar

The euro fell to a global session low versus the US dollar and increased its losses versus the yen in volatile trading during Tuesday’s trading as investors were not prepared to take risks.

The single currency hit a low of $1.2442 and was last seen trading at $1.2450, falling 0.2 per cent since Monday trading. Meanwhile, versus the Japanese currency, the euro spiralled to 98.82, a fall of 0.1 per cent on the day. That remains above 98.68, the global session low.

Among the factors which are currently weighing on risk sentiment are rising Italian and Spanish bond yields, concerns about how the bank bailout in Spain is going to pan out and worries about the outcome of this weekend’s much-anticipated elections in Greece.

Analysts and investors are aware that if a part that is opposed to the austerity terms of Greece’s financial bailout was victorious in the elections, it would most likely lead to the country departing the euro. But, on the other hand, if one in favour of the terms wins, the common currency could see a rise in its fortunes.