Thursday saw the common currency of the European Union drop to its lowest value in four months against the U.S. dollar after economic data revealed decreases with the 17-nation bloc's manufacturing and servicing production, Bloomberg reports.
Concerns are spreading anew that the region is having trouble pushing past the damaging tendencies of the sovereign debt crisis, which has been thrashing about since 2009. The area is in a recession, and troubles in Cyprus underscore the fragility that is plaguing the region.
"Given the deterioration in the political and financial market outlook there is really little hope from what we see that there is going to be a turnaround in the second quarter," economist Chris Williamson with index compiler Markit told Reuters on Thursday.
A survey of regional purchasing managers indicated services and manufacturing industries fell to 46.5 this month after checking in last month at 47.9. Any reading below a 50 represents contraction.
Cyprus, which was approved for an emergency bailout this past weekend yet whose lawmakers on Tuesday rejected the mandate to apply taxes to bank depositors, has until Monday to adhere to terms and conditions of the bailout. At that point, the European Central Bank said it will isolate the nation.
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