The euro fell to its lowest point in four years Friday as fears over the health of European banks and talk of a “Greek-style” debt crisis hitting Hungary spread.
The group currency traded below $1.20 US at one point in the day.
European stocks were down as concerns over derivative operations of French bank Societe Generale weighed on the financial sector.
The loonie also slumped Friday.
“This may have been due to renewed euro/U.S. dollar selling on the back of reports that Hungary is adding to the European sovereign debt concerns,” said Rahim Madhavji, president of Knightsbridge Foreign Exchange Inc.
A government spokesperson recently said that Hungary, perceived as a weak link in eastern Europe due to high debt ratios, could be a risk from a Greek-style debt crisis.
