Euro Touch Lowest Level

U.S. Dollar rose two cents against the euro on Tuesday (04/05/2010), sending the European single currency to as low as one year because of fears of debt crisis, the euro zone expands.

Euro bought 1.2981 dollars in late New York trading, down from 1.3195 dollars on Monday. "U.S. dollar mostly higher in the search supported the recall of risk," said Brian Kim from UBS.

Investor worry that the rescue package 110 billion euros (145 billion U.S. dollars) made by the euro zone and the IMF will not solve the crisis of Greek and - even worse - that other vulnerable economies will become infected.

Strengthened market jitters amid mounting public anger reports in Greece, where angry workers stormed the Acropolis to protest wage cuts in planned expenditure by the government ahead of general strike on Wednesday.

"The market really does not buy the idea that the 110 billion euro aid package for Greece is the perfect solution," said Patrick O'Hare at Briefing.com.

Meanwhile, Spanish Prime Minister Jose Luis Rodriguez Zapatero was forced to quell rumors that Spain has requested an auxiliary strap 280-billion-euro, calling it "absolute insanity."

In Washington, the IMF also issued a rebuttal brief said. "There is no truth of this rumor," said a spokesman, later announced that the IMF board will meet on Sunday "to follow" the Greek request for aid 40 billion dollars.