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Fears have been sparked that Italy could be the next nation to suffer in a similar manner to Greece, after the southern European country's bond yields rose to a lifetime high on Friday.
According to Reuters, the single currency declined by almost one per cent against the dollar to $1.4133 and dropped 0.8 per cent on the Swiss franc to 1.1840 francs. A 0.7 per cent slump against the yen was also recorded.
Manuel Oliveri, currency analyst at UBS in Zurich, said: "Concerns over Italy show contagion risks in the eurozone are increasing. Investor confidence remains low and will limit demand for euro-denominated assets."
Former Italian prime minister Romano Prodi blamed the country's debt problems on "internal policy factors" within the centre-right government, the Daily Mail reports.
Posted by Greg Secker
