Ireland’s & Greece’s Debt Problems Continues to Weaken Euro

The euro dropped today as Ireland’s Prime Minister claimed that the nation doesn’t seek the external aid, the concerns about Greece’s debt intensified and the investors’ sentiment turned to risk aversion.

Ireland continues to discuss its debt and the way out of it with the European Union and the International Monetary Fund. In the same time, Brian Cowen, the Prime Minister of Ireland, claimed that the nation doesn’t seek aid, but “a credible, efficient and above all workable solution that will provide assurance to the markets”. Most analysts commented on such claims that the markets would force Ireland to accept the bailout regardless does the nation want it or not.

Greece again returned to the news and there still isn’t anything good. In truth, the fact that the economic situation hasn’t improved over time gives even more reasons for the concerns. Josef Proell, the Austrian Minister of Finance, clearly thinks that way too as he said that Austria may withhold its share of the next part of Greece’s bailout.

EUR/USD dropped from 1.3585 to 1.3488 as of 20:58 GMT today, following the rise to 1.3654. EUR/JPY fell from 112.89 to 112.36 after it reached the intraday high of 113.42.

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