Euro Ends Dismal Week At Lowest Level Since May

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The battered euro remained under heavy pressure versus the dollar and yen on Friday, hitting a fresh 8-month low against the greenback amid lingering concerns about sovereign debt and the health of the global economy.

A murky report on the US jobs situation failed to stop the surging dollar in its tracks. Traders have sold off the euro due to deepening fears that debt crises now plaguing Greece, Portugal, and Spain could spread, derailing the already sluggish EU recovery.

The US economy shed an additional 20,000 jobs in January, with employment in the construction industry showing a notable decrease. However, the report also showed a surprise drop in the unemployment rate to 9.7%.

Traders failed to make much sense of the report, generating additional risk aversion and further interest in the low-yielding dollar and yen.

The euro dropped to 1.3650 versus the greenback, extending its lowest levels since last May. A brutal stretch has seen the euro pair more than 15 cents from its November highs.

The euro also continued to decline versus the yen, hitting a new 11-month low near 121.50.

Meanwhile, the euro extended its run of choppy trading versus the sterling, which has also become unfashionable over the past few weeks. The pair was bouncing back and forth near .8720 on Friday.

Yesterday, the European Central Bank and Bank of England both held steady on respective interest rates, but policy makers in the UK halted their quantitative easing program.

(Market News Provided by RTTNews)