Looking down

12 September 2011 By Ian Campbell

The euro defied gravity this year, despite the persistent debt crisis. But it has now slipped and could fall further. Renewed talks about a Greek default will weigh on the common currency. Furthermore, growth and interest rate prospects are no longer in the euro’s favour.

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Context News

The euro fell to a seven-month low below $1.36 against the U.S. dollar and a 10-year low versus the Japanese yen on Sept. 12.

Juergen Stark, the chief economist and top German official at the European Central Bank, left his post unexpectedly on Sept. 9 for “personal reasons.” It is widely believed that Stark was opposed to the ECB’s emergency buying of sovereign bonds of countries in the euro area.

Olli Rehn, the EU Economic and Monetary Affairs Commissioner, said On Sept. 11 that a new Greek property levy “will go a long way in meeting the fiscal targets.” Inspectors from the EU, IMF and the European Central Bank, known as the troika, will return to Athens in coming days to review the government’s progress in meeting its fiscal targets, Rehn said.

Reuters story: Euro drops to 10-yr low vs yen as Greek woes mount

Context News

The euro fell to a seven-month low below $1.36 against the U.S. dollar and a 10-year low versus the Japanese yen on Sept. 12.

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