Euro steady close 3.5 month low
Published: 11 May at 9 AM
The euro held steady close to its recent three-and-a-half month low today, with the currency still viewed as vulnerable due to continuing political deadlock in Greece which has left investors worried about the possibility of the nation’s future in the eurozone, reports Reuters.
A fall in Spanish bond yields offered some support to the single currency on Thursday, but it remains down by around 0.6 per cent this week. The euro was steady at $1.2939, hovering close to the three-and-a-half month low of $1.29115 that it hit on Wednesday on the EBS trading platform.
Versus the safe haven Japanese yen, the single currency was steady at 103.38, nears its three-month low of 102.76 also from Wednesday. Daisuke Karakama, a market economist for Japan’s Mizuho Corporate Bank, said that the issue is not whether Greece will default any longer, but whether it will leave or remain in the eurozone.
The euro has been pressurised this week after the Mediterranean country’s two main pro-bailout parties were unable to win a majority vote in last weekend’s elections, leaving question marks over Greece’s ability to stay clear of bankruptcy and remain in the eurozone.
Evangelos Venizelos, the Greek Socialist leader, will meet conservative counterpart Antonis Samaras today in what is likely to be a failed attempt to create a government and ensure there is no repeat election, while leaders of the EU are warning that the country’s euro membership is at stake.