It was not entirely bad, but the long-term debt issue that Italy carried out yesterday was not enough to dissipate doubts about the sustainability of the euro. The common currency had lost up to 1.290 dollars at one point in the trading session yesterday, later regaining some ground due to a small stock market rebound. The euro closed the session at 1.2938 euros on the dollar.
The fact that the euro has settled to this nadir signifies not only that it is at an annual weak point compared to the dollar, but at a new low not seen since September 2010.
More worrisome is the euro's change against the Japanese yen. Yesterday it ended its fifth consecutive losing session, ending its worst streak against the yen since the third week of September of this year.
Further, the fact that the euro fell to 100.1 yen means that the euro is at its lowest point since 2000.
Worst of all is that it looks like the only near-term future left for the euro, which is celebrating its tenth anniversary this year, is to keep being the worst currency in its class. Hedge fund managers have never been as bearish about the euro as right now according to a study called Hedge Funds Watch from Société Générale, as covered by Business Insider.
