The euro has fallen to a four year low against the dollar – hitting under the 1 19 mark for the first time. Against the Yen it dived to an eight year-low as analysts see another week of hammering for the single currency.
Confidence is waning over Europe’s ability to sort its sovereign debt troubles.
Things were not helped by a remark from a Hungarian official at the weekend saying his country was also at risk of a Greek-style crisis.
The result – Japan’s Nikkei average opened around four per cent down taking its lead from a slump on Wall Street over poor employment news in the US.
As always the problem is the global nature of the world’s economies. Direct impact from the problems in Europe on Japan’s banks is limited, but they could be touched as domestic firms, which rely on European markets, are hit by a fall in exports.