Commission concerned at speed of euro's fall on markets

(LUXEMBOURG) - The EU's Economic Affairs Commissioner Olli Rehn voiced concern Monday at the speed of the fall of the euro, as the common currency dropped below 1.19 dollars for the first time in over four years.

Rehn, speaking ahead of talks with the finance ministers of the 16 eurozone nations in Luxembourg, said he agreed with Luxembourg's Prime Minister Jean-Claude Juncker that "it's rather the pace of the evolution than the level that's been of concern."

"We need to reinforce confidence in the European economy," stressed Rehn.

The euro dipped below 1.19 dollars in Asian trading for the first time since March 2006, briefly changing hands at 1.1882 dollars in Tokyo before clawing back some ground. It also plunged to 108.47 yen, the lowest level in more than eight years.

Neil McKinnon of VTB Capital said: "Eurozone debt and banking problems remain paramount."

He said worries about a "double-dip" recession were rising. "Are we moving from a V to the downleg of the W?" he asked.

Juncker is head of the Eurogroup of finance ministers.