Euro drops against US dollar. It is also falling down against the great Japanese yen, and the falling of euro was happened because Greek politicians refused to yield to the austerity measures on which payment of the country’s latest bailout depends.
Lucas Papademos, Greece’s prime minster, held talks with party leaders into the early hours of yesterday to discuss austerity measures to further reduce Greece’s crippling debt that are demanded by the country’s so- called “troika” of bailout creditors (the European Union, the European Central Bank, the International Monetary Fund). The meeting ended with parties agreeing on “all points of the plan except one”, according to Papademos.
Greece’s finance minister has gone to Brussels to meet eurozone counterparts. Traders fear not only on disagreement, but also may upset talks with bondholders.
At 1:40 GMT today EUR/USD came down to 1.3241 from its opening 1.3260. The USD/JPY also slipped to 101.84 from its opening 102.13.