Currency exchange markets see euro hit year's low

The euro has reached a year's low on the currency exchange markets today (May 5th).

Trades this morning saw the currency make $1.297 against the dollar at 08:30 BST.

Gregg Gibbs, foreign exchange strategist at the Royal Bank of Scotland in Sydney, told Reuters: "The euro is now on a clear downward trend and that's quite entrenched now.

"There are no real safe-havens out there at the moment but I guess the market will be looking at the dollar as the best of the worse bunch."

The concern among investors is focused on the fall-out of the Greek debt crisis, as the country struggles to implement tough austerity measures.

Members of the European Union and the International Monetary Fund have offered a €110 billion bail out to the Meditteranean country if the government manages to cut spending dramatically.

Against the pound, the euro hovered around £0.85; close to the year's low of £0.84.

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Posted by Eleanor Ward