Euro Hits Two-Year Low

    Pedestrians pass before a share prices board in Tokyo on July 12, 2012. Japan's share prices fell 130.99 points to close at 8,720.01 points at the Tokyo Stock Exchange, weighed down by the Bank of Japan's decision to hold off any major policy moves following a two-day meeting.  AFP PHOTO / Yoshikazu TSUNO        (Photo credit should read YOSHIKAZU TSUNO/AFP/GettyImages)

    Yoshikazu Tsuno, AFP / Getty Images

    Blaming Spain can only take investors so far. The euro hit a new two-year low Thursday after released minutes of a Federal Reserve meeting revealed the prospects of more U.S. monetary stimulus in coming months is unlikely. The euro fell to $1.21725, its lowest value since mid-2010. The currency has already fallen 5.7 percent so far this year.  "The euro is likely to weaken further as it will be hurt by the ECB's decision to cut the deposit rate and there will be a shift in funding," said George Saravelos, G-10 currency strategist at Deutsche Bank. Investors responded to the new euro low by buying the dollar, sending its index to a two-year high of 83.68.

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