Euro could alter currency exchange

Currency exchange markets could change dramatically if the euro were to disappear.

However, Paul Volcker, economic advisor to the White House, warned yesterday that there was a possibility that the currency would not last.

"You have the great problem of a potential disintegration of the euro," said Mr Volcker.

He added: "The essential element of discipline in economic policy and in fiscal policy that was hoped for has so far not been rewarded in some countries."

Currency exchange markets have put a heavy focus on the euro recently as various member-countries have faced serious financial difficulties.

Greece has been in the headlines over the past few weeks as the government is attempting to implement vital austerity measures ordered by the International Monetary Fund and other financial backers.

This morning the euro was slightly up against the dollar and bought $1.255 at 08:15 BST, althugh it reamins dangerously close to the year's low of $1.253.

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Posted by Chris Barber