Which stocks are the most risky?
The US dollar has rallied in recent days as concerns over the financial crisis in Europe and in the US led to increased capital outflows.
However, some of the most-hyped stocks in the world are now losing money.
The US dollar is now trading at around 70 cents US per euro, up a tenth of a cent from Monday.
The Euro, which is traded in the British pound, is trading at about 69 cents US, down 0.5% from the day before.
“This is very concerning for the euro area and we expect it to weaken further in the coming days,” said Jens Weise, chief economist at Bank of America Merrill Lynch.
“The euro area will be at risk of sliding into recession.
If it does, it could put the entire euro area in the same position as Greece.”
The euro has been trading at more than 1.30 per cent against the US dollar since the start of the year, rising to as much as 1.51 per cent in late March.
The UK has also seen a recent surge in sterling, which has now risen more than 15% against the dollar.
The rise in the pound has been fuelled by rising demand for British products from overseas, which in turn has led to a rise in sterling.
In the past week, British stocks have suffered losses of up to $5bn, with the Sainsbury’s supermarket chain down more than $5.5bn.
The Sainsburys has been the biggest loser, with a $3.5 billion loss.
Other big losers include General Motors, which lost more than a billion dollars in the past 12 months, and American Airlines, which also saw a $2.3 billion loss in the year to March 31.
The loss of the Sbers, which makes vacuum cleaners, has also caused problems for its customers.
“General Motors is very much in the market and its customers have been extremely disappointed with the situation,” said Simon Tait, director of market analysis at investment bank VTB Capital Markets.
“We expect them to be among the most adversely affected by the euro-area’s continued fall.”
It’s a very worrying situation for the UK economy.
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