The euro has plummeted against the US dollar, falling below $1.22 for the first time since April 2006.<\/p>\n
The eurozone’s single currency fell more than 1.7% in afternoon trading in New York, to $1.216, before rallying.<\/p>\n
The decline came after Germany announced plans to ban naked short-selling of shares from midnight local time (2200 GMT).<\/p>\n
The single currency dropped by more than 2% against the yen.<\/p>\n
Traders fear that the austerity measures being put in place in many eurozone countries will hit growth.<\/p>\n
Despite the huge sums of money pledged in support for eurozone countries, severe measures are needed to cut budget deficits and debt.<\/p>\n
The German government’s ban will apply to the country’s 10 most important financial institutions, and aims to stop the short-selling of euro government bonds.<\/p>\n
Short-sellers usually borrow shares, sell them, then buy them back when the stock falls and return them to the lender, keeping the difference in price.<\/p>\n
“Naked” short selling is when sellers do not even borrow the shares.<\/p>\n","protected":false},"excerpt":{"rendered":"
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