By Joseph Adinolfi, MarketWatch
Italy GDP, Russia worries drive investors to the dollar
The euro fell to its lowest point against the dollar in nine months as Italy, the euro zone's fourth-largest economy, slipped into a recession and Russia appeared closer than ever to invading Ukraine.
The euro (EURUSD) fell to $1.3350 Wednesday, down from $1.3371 Tuesday evening, after Italy reported a surprise fall in GDP during the second quarter, a contraction that moved the country back into a recession for the third time in five years. (Also read: Italy shows euro zone may never have left recession)
The euro hit its lowest point against the yen in seven months, falling to Yen136.63 from Yen137.19 Tuesday.
The euro was up against the pound sterlingat GBP79.32 from GBP79.21 Tuesday as U.K. stocks were also pressured by worries about rising tension in Russia and Ukraine.
European stocks also slumped Tuesday because of worries about Russia and Italy, with the FTSE MIB equity index sliding 2.6%.
The ICE U.S. dollar index, a measure of the greenback's strength against a basket of six other currencies, rose to 81.5990 from 81.3280 as investors, spooked by Russia's troop buildup near its border with eastern Ukraine, sought safety.
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(END) Dow Jones Newswires
August 06, 2014 12:00 ET (16:00 GMT)
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