Euro hits five-month dollar low

The euro has hit a five-month low against the dollar as continuing concerns about the Greek economy weigh heavily on the currency. The European single currency touched $ 1.4127 at one point on Wednesday, before recovering slightly to $ 1.4135. Although Greece has passed measures to reduce its budget deficit dramatically, some analysts believe the country's financial woes will persist. Against the pound, the euro also fell, with a euro worth as little as 86.85 p. This was also its weakest position against sterling since August. "Greece's debt problems look to be deep- rooted and they cannot be resolved immediately," said Takeshi Makita at the Japan Research Institute. High debts The euro rose steadily against the dollar for most of 2009 , but recent falls will come as a welcome relief to European exporters. A weaker euro means their products become cheaper for overseas customers. Earlier this week, eurozone finance ministers said they welcomed the efforts being made by the Greek government to reduce the country's huge budget deficit. Last week, the Greek parliament approved a three-year plan to cut the country's deficit from the current 12.7 % of its annual gross domestic product (GDP) to 2.8 %. Greece also plans to reduce its debts, which amount to 113 % of its GDP.