Investors dump euro, buy dollars

The euro is falling fast as European leaders desperately try to find a solution to their debt problems, causing a move to U.S. dollars.

In a news report delivered yesterday, European Central Bank Mario Draghi reported that there would be no buying of bonds to support failing European countries. This announcement initiated strong buying of U.S. dollars on Forex markets which continued all day. Europe banks need to raise 114.7 billion euros to deal with the area's debt crisis but hopes that the money could be raised by bond sales were dashed. In remarks to the press, Draghi said that there wassubstantial downside risks to the economic outlook for the euro area According to Draghi, it was against the IMF's rules to purchase bonds. The European Central Bank, however, did lower interest rates and reserve requirements. In emergency meetings, European leaders agreed Friday to change the rules that kept them from buying bonds, but the UK refused to go along with this and opted out, signaling a split between England and the other countries of the EU. The euro continues to slide in turbulent trading.