On Tuesday the euro hit a 2-1/2-month low versus dollar, effected by concerns about the health of euro zone banks, while traders have also been prompted by a slip in German economic sentiment to dump the single currency.

According to Reuters data, the euro fell to $1.4527, which is its weakest since early October. The currency has extending losses after the German ZEW think tank said economic sentiment fell in December, suggesting that there would be a slow recovery in the country.

Report by Austria’s Die Presse

The Euro was also knocked by a report by Austria’s Die Presse which said that monetary authorities had put Oesterreichische Volksbanken, on a watchlist. This bank is the nation’s No. 4 bank. It has been said by the bank that the report was not correct.

The euro traded at $1.4537,  by 1219 GMT, this is a drop down of 0.8 percent on the day.

Rise in Dollar

The drop down in euro helped the dollar to move up to a 2-1/2-month high of 76.922 against a currency basket.

Dollar against higher-risk currencies

The dollar improved across the board, climbing a full percent to 89.51 yen , and it has also raised against higher-risk currencies, that includes sterling and the Australian dollar.

Dollar Vs Euro

The euro dropped down almost 3% Vs the dollar since the start of the month and since January it is on track for its worst monthly performance.

Dollar Index

The dollar index raised up 2.7% so far in December, poised for its best month this year.

Australian dollar fell roughly 1% against dollar against US dollar.

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