Euro treads water after Portugal passes austerity budget

<p>The euro is holding its ground after Portugal passed it latest austerity budget.</p>

The euro is treading water in forex trading today (November 28th), after Portugal passed a further austerity budget promising another year of cuts and reined-in spending.

In Lisbon yesterday, the coalition government passed the bill with a majority in favour, despite every member of the opposition voting against it.

Leader of the opposition Socialist Party Antonio Jose Seguro branded the decision as a "fiscal nuclear bomb for Portugal".

The budget includes the highest tax rises in the country's modern history and has been protested against by thousands of members of the public outside the parliament buildings in Lisbon.

Finance minister Vitor Gaspar is confident the "enormous" hikes are a "determined step towards recovery".

At 08:40 GMT, the euro lost ground versus the dollar to €1 buying $1.292, while it was stable against the pound at £0.807.

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