Monday, June 20, 2011

The euro is down against the dollar, the uncertainties weighing on Greece


Technology blog from Bangladesh

The euro was down against the dollar Monday, while the EU finance ministers still struggling to complete a second plan of aid to Greece and the Greek parliament has yet to endorse new measures of austerity and privatization.

Around 1300 GMT (1500 Paris) the single European currency was worth 1.4271 dollars against 1.4301 dollars at 2100 GMT Friday.

The euro stabilized against the Japanese currency to 114.51 yen against 114.45 yen Friday.

The dollar rose to its share slightly against the yen at 80.24 yen against 80.03 yen Friday.

After seven hours of heated debate, the finance ministers of the euro zone have led the way Sunday to the payment by mid-July of the fifth tranche of 110 billion euros in loans promised to the International Monetary Fund (IMF) , Greece, always in danger of bankruptcy.

But for this new installment is released, Greece has yet to prove it is meeting its commitments vis-à-vis its international partners.

Thus, "there is always a risk that the new tranche of aid (...) is not released if the Greek Parliament does not endorse austerity measures and privatizations that have enable the country to save 28 billion euros ", which weighs on the single currency, commented Kathleen Brooks, an analyst at Forex.com.

In addition, officials are still struggling to develop a new plan of aid to Greece, despite their agreement on the involvement on a voluntary basis, the private sector in discussions, participation seen as necessary to avoid failure in the longer term the country.

The lack of a clear road map continues to strengthen the uncertainty for several weeks in the markets, noted analysts.

And that float is expected to continue for some time, at least until July 3 - the date was announced Monday by the leader of the finance ministers of the euro area, Luxembourg Jean-Claude Juncker, a special meeting of officials with the aim of finalizing the financial support to Greece.

Mr Juncker also announced Monday an agreement of EU finance ministers on the modalities for the establishment of a fund for ongoing support with a lending capacity of 500 billion euros for the countries of the euro area financial difficulties.

This news was likely to reassure traders who still fear the domino effect that non-payment of Greece might have on the rest of the euro area, notably Ireland and Portugal, which have also already received aid external.

Traders will also pay attention to this week's monetary policy meeting of the Federal Reserve (Fed) on Tuesday and Wednesday, which should remain in a position very accommodating after a disappointing set of indicators in recent weeks showing a marked slowdown the resumption of the world's largest economy.

By 1300 GMT, the Swiss franc rose against the single European currency to 1.2062 Swiss francs to one euro, as against the greenback at 0.8451 Swiss francs to the dollar.

The British pound rose against the euro at 88.16 pence, and stabilized against the greenback at 1.6188 dollar.

The ounce of gold finished 1537 in the morning fixing Friday night against 1537.50 dollars.

The Chinese yuan ended at 6.4788 yuan against one dollar for 6.4757 yuan on Friday.

During Monday courses Friday


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