Euro set to fall even further on debt crisis

BERLIN - Europe's debt crisis will depress the euro still further after it declined to the lowest level since 2006, according to UBS AG and BNP Paribas SA. For years to come.

For the 16 countries using the currency, that isn't all bad. A drop over three to four years would benefit European exporters in countries such as Germany, where foreign sales help offset reductions in government spending and restraint by consumers concerned about inflation. US exports, which President Barack Obama said he wants to double within five years, may become less competitive.

"The euro depreciation is very good news for the region" because the rest of the world economy is expanding, said Charles Wyplosz, head of the International Center for Monetary and Banking Studies in Geneva. "This is going to bring a welcome boost that may save the euro zone from outright recession."