The euro fell broadly on Monday on investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout with a deadline imminent, keeping alive the risk of a messy default which could rock the currency bloc.
Greece’s coalition members must tell the European Union by noon on Monday (5 a.m. ET) whether they accept the painful terms of a new bailout worth 130 billion euros, with euro zone ministers postponing a meeting planned for Monday due to the delay in Athens.
So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika, with concerns mounting that Athens might be opposed to more austerity measures like labor reforms and wage cuts.
“Investors are a bit cautious about the euro ahead of the deadline with a lot depending on it,” said Chris Walker, currency strategist at UBS. “Real money investors are still structurally short of the euro and if cash is not made available to Greece, it will not be good news.”
The single currency fell 0.6 percent to stand at $1.3070, having fallen to as low as $1.3052 on trading platform EBS.
(source: Reuters)
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
