The euro is falling against the dollar on worries that Europe’s debt crisis is spreading to other countries.
Borrowing costs in Italy, Spain and France have risen this week. Higher borrowing costs are a sign that investors are worried that those countries may have trouble paying their debts. On Wednesday, the yield on Italy’s 10-year was just below 7 percent. Greece had to seek a bailout from its lenders after its borrowing costs rose that high. Borrowing rates for Spain and France are above 6 percent and 3 percent, respectively.
The euro fell to $1.3511 in morning trading Wednesday from $1.3543 late Tuesday. The euro fell to $1.3427 earlier, its lowest point since Oct. 10.