June 5 (Bloomberg) -- The euro tumbled for a second week against the dollar, falling to its lowest level in more than four years as concern that Europe’s debt crisis is spreading pushed investors to the safest currencies.
Europe’s shared currency plunged below $1.20 for the first time since March 2006 and dropped for a sixth straight week versus the yen. The dollar and the yen climbed as a lower-than- forecast payrolls report yesterday fueled concern the U.S. economic recovery may be slowing, damping demand for growth- linked currencies. U.S. retail sales growth slowed to 0.2 percent in May, data next week may show.
“There’s one driver of the market, and it’s called Europe,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co. in New York. “Will budget cuts hurt European growth? Will Europe’s crisis hurt U.S. companies? Will contagion spread through the global financial system?”
Comment: Uncertainty rules supreme. There is confusion at high places, and a lack of courage eveywhere. A fog of angst has fallen upon the earth. What is seen are only ghostlike shadows. More than reason the world is ruled by emotion. Fearful greed is the word of the day, and running towards the cliff its reality. Rather than having one small desaster after the next, the world longs for the big one. Don't worry, the big one is already on its way, and probably it's bigger than most do fear.