Euro Weaker on Greek Restructuring Rumors

The euro declined by a full percentage against the dollar in early-morning trading in new York today. Meanwhile, the yield on Greek two-year bonds jumped 100 points to 19.50 percent, the highest rate in the Eurozone area. The reason for the refocusing on Greece’s debt is the persistent rumor that Greece is preparing a restructuring deal that could see some debt-holders offered less in return for forgiving the full amount.

“The European story has a lot of risks to it as Germany is very strong but peripheral Europe is clearly quite weak, so the last thing they need is higher interest rates,” Adrian Mowat, JPMorgan Chase & Co.’s Hong Kong-based chief Asia and emerging- markets strategist, said in a Bloomberg Television interview.

Source: Bloomberg

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