EUR/USD falls to 2-month low amid growing euro debt crisis

NEW YORK (Forex News Now) – The euro fell to a two-month low against the dollar on Monday, as fears grew that the euro zone debt crisis would spread to Portugal and Spain.

At around 7:00 A.M. GMT in European currency market trading, EUR/USD traded at 1.3238, down 0.019% on the day, after dipping to a low of 1.3182.

European finance ministers on Sunday approved an 85 billion euro bailout for Ireland, as analysts speculated that more bailout packages could be on the way for the “next Ireland”, such as Portugal and Spain.

According to EUR/USD analysis, the euro was likely to touch support around the high of Sep. 19, 1.3160, and encounter resistance around the high of Nov. 25, 1.3388.

The dollar was also strengthened by comments from South Korean President Lee Myung Bak, who said his country would make North Korea pay for last week’s artillery barrage on a South Korean island near the border between the two countries.

Elsewhere, the euro slid against the yen: EUR/JPY traded at 111.25, down 0.07% on the day, according to intraday analysis.

By ForexNewsNow Team

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