Euro falls below $1.32 on crisis, growth worries

The euro sank below the $1.32 level on Monday as confidence in European growth and progress on the Greek crisis sagged. At 2100 the euro was at its lowest level since January, $1.3178, compared to $1.3390 on late Friday. As stock markets also tumbled, gold meanwhile edged up to the $1,660-an-ounce level from $1,630. "The financial markets now are almost fully expecting a Greek default. But as yet it may not quite be priced in, which is why we are seeing such a sell off this morning," said Simon Denham of Capital Spreads. The euro sank against the Japanese yen, to 100.96 yen (103.27), and dropped to 1.2137 Swiss francs (1.2144 francs). The dollar was at 76.59 yen, down from 77.11, and 0.9207 francs (0.9069). The British pound fell to $1.5432 ($1.5587). Meanwhile China's renminbi, or yuan, was slightly higher at 6.360 to the dollar, from 6.381 Friday, as the US Senate advanced a bill aimed at punishing Beijing for keeping its currency undervalued for trade advantage. The bill, supported by both parties in Congress but opposed by Beijing and potent US business groups, sets the stage for retaliatory duties on Chinese goods if Beijing is found to keep its currency and thus its exports artificially cheap.