Four-year low for euro currency exchange

Currency exchange rates for the euro have reached a four-year low against the dollar.

The euro fell broadly this morning (June 7th) and tumbled to the low of $1.193 against the US currency at 08:15 BST.

However, a slight rise against the pound was also experienced by the tender, which bought £0.828.

Economists have suggested that comments from the Hungarian prime minister on Friday (June 4th) are responsible for the decline against the dollar.

The new prime minister admitted that, due to alleged falsification of data by the outgoing government, the country was in fact facing a Greek-style debt crisis.

According to the BBC, the country's currency fell by six per cent against the dollar following the comments.

Jonathan Cavenagh, a currency strategist at Westpac, told Reuters: "Europe's sovereign debt problems are just not going away and it's difficult to see a light at the end of tunnel for it just yet."

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Posted by Eleanor Ward