FX round-up: Euro trades at fresh four year low

Date: Monday 07 Jun 2010

The euro traded at a fresh four year low against the dollar on Friday after weaker than expected US job figures and on increasing fears about the Hungarian economy.

Concern was sparked after comments from Hungary’s spokesman for the Prime Minister who compared the country’s fiscal position to that of Greece.

Peter Szijjarto said, “It’s clear that the economy is in a very grave situation. It’s not an exaggeration at all to talk about a default.”

Jitters were made worse following disappointing US jobs number, which came in below market expectations at 431,000 for May. The euro fell to a fresh four year low of $1.1954 after losses of 2.7% over the week.

Safe haven interest took the dollar and yen higher at the end of the week.

Sterling fell against the dollar as it mirrored the euro’s losses ahead of the US nonfarm payrolls.