The euro fell to a new low against the US dollar last night despite efforts by European Central Bank officials to step up a campaign to persuade the world that financial markets were giving the single currency a raw deal.
The decline to $0.8534 in late trade in New York followed a statement by a regional US Federal Reserve president that recent falls raised questions about the euro's longer-term viability. But Mr Alfred Broaddus felt the currency would survive in the long run.
Dealers expected the euro to win strategic support at $0.8510 but warned that if that value was breached, losses could be extended to $0.8360.
ECB board members sought yesterday to win back support for the currency. Ms Sirkka Hamalainen said the single currency may take time to recover but it would once markets recognised the region's fundamental strength.
Separately, her colleague Mr Otmar Issing praised the region's outlook as the most promising in 20 years. Bank of Ireland's chief economist, Mr Jim Power, said the ECB should intervene aggressively to support the currency, warning that it may yet fall to $0.80 if such action was not taken.
