Renewed concern for the European banking system has pushed the euro to a 16-month low against the dollar. At 9:21 am in New York, the Euro had fallen to $1.2805.
The move was triggered by an increase in France’s borrowing costs when the interest on 10-year bonds rose to 3.29 percent compared to last month’s auction where 10-year notes sold at 3.18 percent. In December, France’s triple-A credit rating was put on watch in what many feel is the first step towards an inevitable downgrade.
