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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.