The euro extended its decline versus the US dollar for the second day today as the spread between the bonds of the indebted nations and the German bunds widened on the speculation that the European debt problems may worsen.
The austerity measures proposed to the indebted countries, including Greece and Ireland, as term of the bailout have met the vehement resistance in these countries. The European leaders will meet later this month, but not many believe that the leaders will be able to find solution to the problems acceptable to everyone on this summit.
EUR/USD dropped from 1.3968 to 1.3924 as of 11:24 GMT today.
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