Euro Continues to Fall Against the Dollar

The Associated Press is reporting that the euro is continuing its slide against the dollar, dropping below $1.37 amidst worries about public debt in several European countries.

The 16-nation euro bought $1.3669 in morning European trading, down from $1.3746 in New York late Thursday.

The currency has been buffeted by mounting concern about the debt loads being carried by several of the European countries that share it, including Portugal, Spain and—most dramatically—Greece.

"There is increasing anxiety about individual European governments' ability to rein in their deficits, in spite of soothing noises from the governments themselves as well as the European Central Bank," said Michael Hewson, an analyst at CMC Markets.

He added that "the Bank of England's decision (Thursday) to merely pause stimulus has also added to the concerns about sterling and the UK's fiscal position." The pound was down to $1.5678 from its level late Thursday of $1.5764.

The falling euro can, however, help bring in travelers to European countries"The prices are bringing in late bookers," notes Virgin Vacations president Nigel Osborne. "Europe suppliers and hotels will benefit in two ways. Planning for future travel to Europe will increase for the group market, and advance summer bookings will increase."

Check back at TravelAgentCentral.com for more news about the euro and the pound.