News of: Tuesday, May 31 2005,

Euro currency drops against Dollar

The Euro has dropped below to almost 1.23 US Dollar in the past few days.

Experts say this has to do with the outcome of the referendum in France about the new constitutional treaty of the European Union. The French 'No' result kindles fears in the market that economic reform in the European Union, seen as necessary for economic revival, will take longer.

An underlying factor is also the sagging European economy, which performs worse than the American economy.

The upcoming referendum in the Netherlands, tomorrow, also seems to lead to a negative outcome, according to opinion polls.

The Euro has dropped some 5 percent against the US dollar in just a month.