The European Union's shared currency fell Wednesday to its lowest value in four weeks against the U.S. dollar amid worries about debt troubles plaguing Italy and that appear to be growing larger, published reports state.
As the host of the euro zone's third-biggest economy, Italy has seen borrowing costs climb higher than 7 percent, according to Reuters. The nation is believed to be heading toward requesting international aid to handle its debt obligations, which contributed to the downfall of Prime Minister Silvio Berlusconi, who announced earlier this week he will resign after 17 years in office.
"All of this is adding to the case for more economic weakness in the euro zone as a whole, and recent manufacturing data suggests things are getting worse," strategist Mark McCormick with Brown Brothers Harriman in New York told Reuters.
Traders told Reuters the the European Central Bank has been purchasing large amounts of Italian debt on Wednesday.
The single currency also slipped to its lowest price in 14 days against the Japanese yen as concerns strengthened about Greece's ability to move forward with a new government capable of confronting the debt scourge, according to Bloomberg.
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