The euro has hit an 18-month low versus the dollar and experts say the slump could continue amid fears about European economies.

The euro slid as low $1.2365 in trading, the lowest since October 2008. It last traded at $1.2380.

The weaker Euro makes Ireland far more attractive as a vacation destination for Americans.

Many of the complaints over  years about Ireland have been the excessively high prices, based in part on the strong Euro.

"The euro hasn't derived any benefits from any budget cuts from Spain and Portugal,"  said Chris Turner, head of FX strategy at ING, who forecasts the euro will be at $1.15 in six months.

"People are either concluding that these cuts will be unsuccessful and debt sustainability remains a key issue, or they will be successful in aggressive fiscal tightening and that these economies would slow aggressively and the European Central Bank has to keep interest rates low," he told The Irish Times.

European authorities announced a massive debt coverage  for Greece, Spain and Portugal this week, but investors remain skeptical.

Some are suggesting that Greece may leave the Euro currency altogether and devalue its own currency to deal with its massive debt.