New Greek Economic Worries Push Euro Down

By: Barbara Zigah

In Asian trading today, the common currency Euro slipped versus the U.S. Dollar and Japanese Yen on media reports that the debt-burdened nation of Greece is seeking to amend the recently discussed bailout plans. What officials in Greece hope to do is avoid implementing so-called austerity measures, a requirement of the International Monetary Fund proposal, which are strongly opposed by Greek citizenry. However, market players are inclined to believe that, without such austerity measures, efforts for the Greek nation to revitalize their economy will be endangered. Not only that, but analysts advise that such a move suggests to other European nations with struggling economies that it is alright to accept help in the form of loans and debt write-offs, without implementing cost-cutting policies that would avert a future recurrence. Also holding the Euro down was a recent Financial Times report that said that Greece will hold a U.S.-based debt sale sometime this month, with the goal of raising $5 - $10 billion, the implication being that Greece cannot adequately raise capital at home.

As reported at 1:50 p.m. (JST) in Tokyo, the Euro was trading against the U.S. Dollar at $1.3420, down from Monday’s late trade of $1.3484 in New York. Versus the Japanese Yen, the Euro slipped from Monday’s late New York trade of 127.17 Yen to 126.13 Yen today.