The euro fell today, Thursday, after the expected collapse of the government Franceraising concerns about the second largest economy in the region.
The euro recorded at 1.052775 to the dollar, remaining close to its lowest level in two years at 1.03315 dollars, which it recorded at the end of November, in light of growing fears of the continuation of the French government crisis.
The French Parliament approved a vote of no confidence in the government yesterday, Wednesday, which deepened the political crisis in the country and threatened its ability to legislate and address the large budget deficit.
At a parliamentary hearing yesterday, Lagarde said that economic growth in the euro zone may be weaker in the coming months, and that downside risks dominate the outlook in the medium term.