Euro Falls To Lowest Level Since April 2006

The euro today continued its decline, falling below the March 2009 lows against the U.S. dollar, and closing at the lowest level since April 2006.

The weak euro is of mixed blessings for the euro area, benefiting some and hurting others. Since the key beneficiaries include debtors, including euro area governments perceived as week, the weakness of the euro will ease the debt crisis, especially since it this time is not associated with higher nominal bond yields for countries perceived as week.