Berlin – On Friday, the 16-nation currency Euro has dropped to its lowest level to $1.1973 for the first time in not more than 4 years, since the time it bought $1.1920 in the year 2006 and now it bought for $1.2182 in New York late Thursday.

The steep fall in the euro has further weakened the concern for the continent’s growth prospects and the impact of the European governments’ spending cuts that are already being pushed through because of the debt crisis in the eurozone.

It was only on Friday after the spokesperson for the Hungary’s new Prime Minister expressed that the country’s economy is in a “grave” condition and the government is ready to avoid such crisis the way it was dealt by Greece, that a sudden decline in euro value has further put the Europe’s growth economy into doldrums.

Although Hungary is a member of the European Union but the country does not use euro, as it has already received the bailout of Euro20 billion from the IMF and others, in the year 2008 to aid itself to avoid a default on its loans in future.

As a matter of fact, the weak jobs and economic data from the U.S have also contributed to the decline of the euro value. The British pound also fell on Friday, dropping from $1.4633 level on Thursday to $1.4508 on Friday.

[Source – AP]