The US dollar hit a two-year high against the euro Friday, as Europe’s financial problems forced the region’s currency to decline.
The dollar and the Japanese yen benefited, as investors looked for safety. Borrowing costs for Spain and Italy rose sharply, which reflected investors’ unease about the financial situation in the countries.
The euro traded as low as $1.2265, which was the lowest it has been since July 1, 2010 when it sank to $1.2193.
The yen rose more than 1 percent against the euro, as well.
The dollar also gained against the British pound to $1.5470.