Troubles in euro zone nations Greece and Spain pulled down the shared currency of the European Union on Wednesday, the monetary unit's eighth straight day of losses against the U.S. dollar, according to Bloomberg.
Political leaders in Greece were haggling over terms and conditions to create a new government as conjecture strengthened about the two-time recipient of bailout funding leaving the euro currency bloc due to its fiscal issues. Not since early September 2008 has the euro demonstrated such a weak performance.
"In the next four weeks we should know who is controlling Greece, whether or not it runs out of money or chooses to adhere to its bailout terms and how the Spanish government plans to sort out its banking sector," research director Kathleen Brooks with FOREX.com told Reuters. "There are high levels of market risk associated with all of these events, which we believe is euro negative."
The value of the monetary unit has dropped well more than 2 percent of its value against the world's reserve currency since April 27. The euro also lost value on Wednesday against the yen of Japan.
Ten-year notes issued by Spain saw yields shoot beyond 6 percent on Wednesday, according to Reuters. Concerns are growing strong for the well-being of the nation's banking sector.
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