Euro Falls To 28-month Low After Nowotny Comments

The euro slid to its lowest level against the dollar since August 2012 on Monday after Ewald Nowotny, member of the European Central Bank's Governing Council, expressed concerns about the health of the region's economy. The shared currency fell to as low as $1.2252, down from $1.2289 on Friday. According to media reports, Nowotny indicated that eurozone inflation could fall even further in the first quarter of 2015, which would take the currency union dangerously close to deflation. Inflation fell to 0.3% in November from 0.4% in October. In Monday's comments, Nowotny also said he sees the eurozone as the weak spot in the world economy and that it is worth discussing government-bond purchases, according to the reports.