Euro Falls Against Dollar In Choppy Trading

Published December 21, 2011 8:36PM (EST)

NEW YORK (AP) — The euro fell against the dollar in choppy trading Wednesday after the European Central Bank loaned a record amount of money to the continent's banks. The loans are meant to shore up Europe's struggling financial sector.

The ECB loaned $639 billion to 523 banks for three years. It is the biggest ECB infusion of credit into the banking system in the euro's 13-year history.

The euro fell to $1.3044 late Wednesday from $1.3076 late Tuesday.

The euro initially rose as high as $1.3197 after the news. It later fell as low as $1.3023 as traders worried that the amount being loaned may suggest that European banks are in worse condition than was thought.

In other trading Wednesday, the British pound rose to $1.5671 from $1.5660. The dollar rose to 78.09 Japanese yen from 77.87 Japanese yen and to 0.9362 Swiss franc from 0.9313. It fell to 1.0280 Canadian dollar from 1.0311 Canadian dollar.


By Salon Staff

MORE FROM Salon Staff


Related Topics ------------------------------------------