Euro Slides Amid Ongoing Uncertainty Over Greece
25 May 2015 - 5:38PM
RTTF2
The euro weakened against the other major currencies in the
early Asian session on Monday, as concerns over Greece continued to
impact the markets.
Investors continue to focus on developments in Greece after the
country's interior minister, Nikos Voutsis, told Greek Mega TV's
weekend show that the installment to the IMF due next month won't
be paid unless there is a deal with creditors.
Reports emerged that Germany and the IMF are becoming
increasingly hardline in their approach to Greece in the ongoing
bailout talks.
Meanwhile, finance ministers and central bankers from G7 nations
will begin a three-day meeting in Dresden, Germany on Wednesday to
address faltering global growth.
Trading activity is likely to be very thin as the U.K. and U.S.
markets are shut for the Spring Bank Holiday and Memorial Day,
respectively. Parts of Europe will observe the Whit Monday
holiday.
Asian shares are mostly up, after the Fed chair Janet Yellen
backed her plan to start raising rates later this year.
Yellen hinted that it would be appropriate to raise interest
rates at some point this year, as long as economic activity picks
up. Also, rising shelter and medical care costs boosted underlying
inflation pressures, the Labor Department reported, sending the
dollar higher and pushing government bond yields up.
Last Friday, the euro fell 0.15 percent against the pound, 0.91
percent against the U.S. dollar, 0.25 percent against the Swiss
franc and 0.51 percent against the yen.
In the Asian trading today, the euro fell to a more than a
2-week low of 1.0341 against the Swiss franc and nearly a 2-week
low of 1.3484 against the Canadian dollar, from Friday's closing
quotes of 1.0381 and 1.3514, respectively. If the euro extends its
downtrend, it is likely to find support around 1.01 against the
franc and 1.32 against the loonie.
Against the pound and the U.S. dollar, the euro slipped to
nearly a 2-1/2-month low of 0.7088 and nearly a 3-week low of
133.29. Thereafter, the euro held steady against both the
currencies.
The euro slipped to nearly a 3-week low of 133.29 against the
yen and held steady thereafter.
Data from the Ministry of Finance showed that Japan had a
merchandise trade deficit of 53.44 billion yen in April.That beat
expectations for a deficit of 386.8 billion yen following the 3.3
billion yen surplus in March.
Exports climbed 8.0 percent on year - also topping forecasts for
an increase of 6.0 percent following the 8.5 percent jump in the
previous month.
Against the Australia and the New Zealand dollars, the euro
edged down to a 5-day low of 1.4025 and a 2-week low of 1.5009.
Thereafter, the euro held steady against both the currencies.
At 11:00 am ET, Federal Reserve Governor Stanley Fischer will
deliver a speech titled "The Federal Reserve and the World
Economy," in Israel.
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