The value of EUR decreased in comparison with dollar after the Italian Prime Minister Matteo Renzi suffered a heavy defeat on the referendum yesterday, the BBC reported. The drop was recorded immediately after Renzi announced his resignation.
Euro fell from 1.0625 USD to 1.0550, which is the lowest level since March 2015. Economic analysts believe that investors are cautious, but not panicking.
“When the new week begins, markets will most probably be shaken, but we are not worried,” said the research director in City Index Direct Kathleen Brooks.
It is also assessed that rejection of constitutional reforms brings Renzi’s political future into question and that doors for new political instability in that country are opened.
Analysts are especially concerned for the Italian banking industry. Many banks are fighting with the burden of high debts and need refinancing, which will be difficult to achieve in the middle of a political crisis.
Majority of Italian government is concerned over this problem.
(Source: klix.ba)
