Euro sinks as Spain's borrowing costs surge again

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Associated Press

Posted on July 24, 2012 at 12:01 PM

Updated Tuesday, Jul 24 at 12:01 PM

NEW YORK (AP) — Europe's spreading debt crisis is pushing the euro to its lowest point against the dollar in more than two years.

Spain's borrowing rates spiked again Tuesday, pushing the country closer to needing a financial lifeline. Investors worry that if Spain needs to be rescued, the rest of Europe won't be able to afford it.

Traders also sold the euro after Moody's ratings agency lowered its outlook for Germany, the Netherlands and Luxembourg, saying those stronger countries might have to give financial aid to Spain or Italy.

The euro fell as low as $1.2041 Tuesday, its lowest point against the dollar since June 2010. The euro was worth 1.2125 late Monday.

The British pound fell to $1.5503 from $1.5521.

The dollar fell to 78.16 Japanese yen from 78.40 yen.

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