Euro continues fall after referendum vote

Story link: Euro continues fall after referendum vote

The euro continued its slide on Tuesday on the consequences of France’s rejection of the European Union constitution.

One of those consequences was the naming of a new French prime minister, Dominique de Villepin. Villepin, a less-than-popular choice, is seen as against economic reform and has a reputation as being “confrontational”. In addition, he is an opponent of the Iraq war.

Despite the negative effect on the euro, events in France did not seem to have nearly as much influence of central European nations that wish to join the euro and/or the EU. The Turkish lira rose 0.8 percent in relation to the dollar, to TL1.354, and the Czech koruna gained 0.3 percent against the euro, to Kc30.37.

The euro was down 1 percent in relation to the US dollar and hit a new seven-month low of $1.2349, the largest fall against the dollar in two months. The euro also fell 1 percent against the yen to ¥133.33. That is a four-month low.

The euro also fell 1 percent in relation to sterling to sit at £0.6773 and was down 0.5 percent as opposed to the Swiss franc, to SFr1.5364.