ROME:-European economy suffered heavily after the Italian Prime Minister Matteo Renzi resigned just few hours after the referendum over his plan to reform the constitution.
Euro dropped as much as 1.4 per cent to $1.0505 putting the economic systems to test which helped the currency to rebound in the past couple of years. A break below its 2015 March low of $1.0457 would send the currency to its lowest level since early 2003.
Economic analysts predict a risk for market investment if the new government cannot overcome the political instability soon.
Although political experts are of the opinion that Italian President Sergio Mattarella could ask Renzi to reconsider his decision or attend the consultation meetings with party leaders to help find suitable a prime minister in case Renzi declines.