Euro Falls to A 10-Month Low As Worries About Greece Continue (ULE)

The Euro dropped to a 10-month low against the dollar on Wednesday as worries about Greece continued to weigh down the currency. The Euro also fell to its lowest level in its 11 year history against the Swiss franc.

The Euro fell 1% to $1.3352, the lowest level since May 2009. It dropped to 1.4232 Swiss francs, the lowest in its 11 year history, but later recovered to 1.4280 Swiss francs. On Tuesday, the ProShares Ultra Euro (ETF) (NYSE: ULE) closed 0.74% lower at $26.71 in New York.

The currency dropped after Olli Rehn, EU Monetary Affairs Commissioner, said that the EU must decide on a way to help Greece this week, or run the risk of causing a “serious disruption” for the Euro. Rehn’s comments came after Germany gave indications for the first time that it is willing to accept a bailout by Euro zone countries for Greece, in case it needed one, as a last alternative. However, it said that it will only accept such a solution if the International Monetary Fund is also involved in a bailout and if its partners in the Euro zone are more disciplined about their budgets.

Germany has always been in favor of involving the IMF in a bailout for Greece as it believes that the Washington based fund has the technical expertise in dealing with such situations. However, the idea of involving the IMF has faced tough opposition from other Euro zone countries, especially France and Spain, who believe that involving the fund will hurt European prestige.