Monday, 22 Feb 2010

Concerns over Greece Continue to Weigh on the EUR

The EUR experienced choppy trading today as uncertainty over Greece's financial vows persists. The Yen was the main beneficiary from the persistent market uncertainty, advancing versus the EUR and USD as speculation over Greece's debt future as well as the pace of the Federal Reserve's stimulus withdrawal boosted demand for Japan's currency as a safe heaven refuge. The Yen was also boosted versus the Dollar over speculations a stagnant U.S. job market will keep Fed Chairman Bernanke from raising the central bank's key interest rate.

The Dollar rose against the EUR after the European Union denied that there is any work on an aid package for Greece.

The Yen rose 0.4% to 91.17 versus the Dollar, from 91.52 on Feb. 19. Japan's currency advanced 0.5% to 123.93 per EUR, from 124.58 Friday. The dollar rose 0.1% to $1.3598 per EUR, from $1.3613.