Euro fell under 1.25, marking its weakest day since June 2010. The currency got a boost earlier in the day after polls in Greece showed that there are more voters supporting politicians who back the nation’s bailout ahead of the June 17 general election.
The boost, however, was short lived. Spanish banks came back to the worry zone. The borrowing costs in Spain soared and the question is how would the government find additional money to bail out its troubled banks. Banks in Spain have about $1.25 trillion in deposits, and that’s an amount Europe cannot afford, so the fear is banking industry might collapse.
We will keep following this, so keep it right here at the Financial News Network. I’m Julia Sun and we’ll be right back.