#Euro

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The euro has fallen to a 17-month low against the dollar. That will make inflation worse in the EU, where political worries and concern over French debt are already troubling investors. Is a fiscal crisis at hand?

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

The euro could climb to levels last seen five years ago as a drop in hedging costs would drive flows of more than $200 billion and prop up the currency, according to Morgan Stanley.

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