| Euro Zone Finance Worrying, Euro "staggered" |
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| Wednesday, 10 March 2010 10:18 | |||
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London
- Euro slumped back against the dollar on Tuesday amid revived concern
for the financial fate of Greece and other eurozone members, and
opposition to the plan to form European-style Monetary Fund IMF
(International Monetary Fund).
The European single currency in late day trading fell to 1.3583 dollars from 1.3631 late Monday in New York. While the dollar traded at 89.89 yen after 90.27 yen on Monday. Because Greece face more labor unrest this week by protesting unions saving measures, there is increasing uncertainty about prospects for the proposed European funds to rescue the financial pressure the European Union. Head of the German central bank, Axel Weber, in remarks carried by the Financial Times, rejected the idea because it screwed up "order" and said the European Union must strengthen the single currency is not creating new institutions. Analysts also warned that any fund will need a number of recognition by the European Union and the euro zone that they have been able to enforce financial discipline its members. Other experts said the fund could encourage fiscal oversight, maintaining the government with their ideas can complicate financial bailout. "The Greek government faced with the task of convincing people about the need for consolidation steps are very painful," said Commerzbank analyst. "The demonstration hardware for a few days to show how this task will be like Hercules (giant). But it would be a bigger task if the cause of the crisis was disguised." Euros are also feeling the effects of investor concern that the acute financial difficulties that plagued Greek debt could happen elsewhere in the euro zone. "Although the Greek situation became news yesterday, there are number of other economies such as replacing Portugal Greece and Italy for the opening," Phil McHugh warned of Currencies Direct. "It is estimated that the euro remained under pressure for the future." Added Jane Foley of Forex.com: "Promise savings yesterday by the Ministry of Finance of Portugal may have been arranged to deflect speculation that could happen in the next state's most vulnerable members (euro zone) after the Greek." Government of Portugal said Monday, will cut spending, delay investment and to sell state assets to improve state finances, a promise that unions on Tuesday expressed as unjust, the least able to cope with hard times. In London on Tuesday, the euro changed hands at 1.3583 dollars against 1.3631 dollars on Monday, 122.10 (123.07) yen, 0.9061 pounds (0.9047) and 1.4625 Swiss francs (1, 4629). Dollar stood at 89.89 yen (90.27) and 1.0766 Swiss francs (1.0728). The pound was at 1.4969 dollars (1.5062). On the London Bullion Market, gold prices fell to 1115.75 dollars per ounce from 1125.75 dollars per ounce on Monday.
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