Top > Business > 2005 > November > 2005-11-09

Euro falls due to uncertainty and riots

The euro fell against the dollar early on in the week as riots in France sparked global fears that the violence could spread throughout Europe, with car burnings in Berlin and Brussels seemingly proving the doomsayers right. After almost two weeks of riots, the euro has fell to two-year lows and the European Central Bank is also having to deal with demands to hold off on changing interest rates.

More than 4,700 vehicles have been set on fire since October 27, when protests were sparked by the deaths of two black teenagers, electrocuted while believed to have been hiding from police in an electricity substation in Clichy-sous-Bois, a Paris suburb.

If the violence were to spread beyond what little in has at the moment into neighboring countries, the euro would more than likely drop further as the French and other regional governments cracked down on citizens. Tourism has already been hurt due to the riots. Everyone is dismayed, but no one is surprised that this has happened. The focus now is on fixing it.