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Exchange Rates: Euro Falls to 16-Month Low Against DollarJanuary 12, 2012 By: Jena Tesse Fox
Good news for US travelers to Europe, but bad news for Europe in general: The Associated Press is reporting that the euro fell to a 16-month low against the dollar on fears that Germany, Europe's largest economy, may be stalling.
The German government estimated that the country's economy contracted at an annual rate of 0.25 percent in the last quarter of 2011. The exact figure will be released next month and could be revised.
The euro dropped as low as $1.2661 Wednesday afternoon, its lowest point since September 10, 2010. It was worth $1.2790 late Tuesday.
The dollar also rallied against most other currencies.
The British pound fell to $1.5325 from $1.5486, and the Swiss franc rose to 0.9511 from 0.9485.