Euro falls to one year low against US dollar

The euro has fallen to its weakest in more than a year against the US dollar ahead of speculation the European Central Bank will announce the region is sliding into recession.

The single currency also dropped to a two year low againts the Japanese yen.

Most of Europe has yet to follow the United States with bail out proposals with France and Germany clashing over whether to create a fund for beleagured banks.

Although the US rescue package has been welcomed in Europe it is not seen as a cure all, with a worsening economic outlook prompting calls for European Central banks to cut interest rates.

In Britain gloomy economic data continues to pour in with British house prices falling one point seven per cent in September.

Inter bank lending rates in Asia have risen with a surge in Singapore and Hong Kong.

One leading dealer is saying the markets in Asia are still pretty much frozen.

On a brighter note European share prices posted early gains in reaction to the US bailout package.

Banking stocks were among early leaders with some experts hopeful building blocks are being put in place for a general recovery worldwide.

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