Euro hits four-month low under $US1.28

Written By Unknown on Rabu, 27 Maret 2013 | 18.59

THE European single currency has fallen under $US1.28 for the first time since November owing to concerns about fallout from the Cyprus financial bailout.

The euro hit $US1.2789 about 1020 GMT (2120 AEDT) on Wednesday - the lowest point since November 21 - and compared with $US1.2861 late in New York on Tuesday.

The foreign exchange market "is concerned about medium-term contagion effects" of the Cyprus bailout, said Commerzbank analyst Thu Lan Nguyen.

Troubled eurozone nation Cyprus on Wednesday scrambled to finalise capital controls to avert a run on banks, a day before they are due to reopen after a nearly two-week lockdown while the island secured a huge bailout.

Meanwhile, there are fears that the controversial terms of the bailout could be mirrored in any future financial rescues of indebted eurozone members.


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