Dhaka, Bangladesh (BBN) – The week started with Euro (EUR) slipping on Friday after a Greek far-right party leader refused to back a bailout agreement, raising fears once again that could face a chaotic default on its debt.
The pessimistic tone of the market simply contrasted with the previous session in which optimism over a Greek deal lifted the EUR to an eight-week high against the USD, a weekly market update said.
The Australian Dollar (AUD) also underperformed, pressured by Euro Zone concerns as well as a dovish quarterly statement from the Reserve Bank of Australia and data showing a slump in Chinese imports.
However, the EUR edged up on Monday after the Greek parliament approved an austerity bill that put the country a step closer to securing much-needed funds, though market players warned of more hurdles before lenders seal a bailout deal.
The EUR gained about 0.3 percent to USD 1.3235, recouping some of the losses made on Friday. During midweek, the EUR and the Pound Sterling (GBP) fell after rating agency moody warned it may cut its triple-A ratings of France, Britain and Austria while downgrading several Euro Zone countries, including Italy.
The Japanese Yen (JPY) also slid to its lowest in 3-1/2 months against the USD after the Bank of Japan boosted its asset-buying program.
The week ended with EUR sliding to a three-week low versus the USD as officials in Europe considered delaying a bailout package for Greece even as the indebted country met demands set by international lenders. The EUR last stood at USD 1.2991.
BBN/SSR/AD-18Feb12-10:20 am (BST)
