| Euro Falls Despite EU Promises Support To Greece |
 |
 |
 |
| Friday, 12 February 2010 09:39 | |||
|
London
- Euro falls against dollar on Thursday local time, because traders
complained of a lack of detail in the European Union promises to
medukung debt-stricken Greece, dealers said.
Euro changed hands at 1.3644 dollars in late trading in London compared with 1.3732 dolardi New York at the end of Wednesday. The dollar fell to 89.83 yen from 89.92 yen in late Wednesday. Euro has increased in the early days because EU leaders meet to discuss the Greek deficit and debt, but the European single currency fell again after a summit in Brussels pledged to stop direct cash injection to Athens. "State-euro area member countries will take coordinated and decisive action when necessary to maintain financial stability in the euro area as a whole," said the 27 heads of state and government in the European Union agreed on the text. EU President Herman van Rompuy, chairman of the first summit, stressing that posisibya supported by all EU countries, called for Greece to do "whatever is necessary, including additional steps" to meet the targets agreed with the European Commission about the state budget policy European Union countries. Under the agreement, Greece will reduce the public deficit of four percent this year from 12.7 percent today, more than four times the limit set by Brussels. "It seems now the European Union has made a decision to help Greece - but only what is required for help remains a mystery," said analyst James Hughes of CMC Markets financial companies. He added: "Confusion over bailout is leaving a bit nervous traders." Traders may have to wait until Monday, when the euro zone finance ministers gathered in Brussels, to study the details of exactly how the EU will help sustain the public finances of Greece. While the market was disappointed at the lack of detail on Thursday, a bailout may also have a negative effect, analysts said. "There are too many difficulties associated with the bailout and it appears that other countries are also experiencing difficulties. Therefore, will depend largely on how the aid package is structured," Commerzbank analysts wrote. The idea of financial support from Germany could "damage the credibility" of European monetary union gives how much the European Central Bank (ECB) "was emphasized in the past the need for fiscal prudence," said Derek Halpenny from Bank of Tokyo-Mitsubishi. "Over the medium term, it is difficult to see how this matter is something but negative for the euro," he said. Greece, one of the 16 countries using the euro single currency, has been under increasing pressure from financial markets because the size of the deficit that swelled by the global economic crisis. In recent weeks, the euro has been rocked by mounting concerns about public finances in the eurozone - especially in members of Portugal, Ireland, Italy, Greece and Spain. Last Friday, the single currency had fallen to 1.3586 dollars - the lowest level since May 20, 2009. In London on Thursday, the euro changed hands at 1.3644 dollars against 1.3732 dollars late Wednesday, at 122.56 yen (123.51), 0.8703 pounds (0.8810) and 1.4658 Swiss francs (1, 4664). Dollar stood at 89.83 yen (89.92) and 1.0743 Swiss francs (1.0671). The pound was at 1.5677 dollars (1.5588). | antaranews.com | tenderoffer.biz |
|
Legitimacy & Law
About Us
Trusted Partner
