Monday, May 21, 2012
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FOREX-Euro near one-week low vs dollar; Aussie buoyant

* Uncertainty over Greece hitting jittery euro

* Greek/German bond spreads close to record highs

* Australian dollar buoyed by rate expectations/commodities

The euro held near a one-week low against the dollar on Wednesday on uncertainty over a proposed Greek aid deal, while the Australian dollar rallied against the yen on expectations of higher interest rates.

The euro has been pressured in recent sessions following a media report Greece wanted to renegotiate a joint EU-International Monetary Fund aid deal reached last month.

Greece denied the report but on Tuesday the yield spread between Greek and German government bonds exceeded 4 percentage points, the widest since the euro's launch.

"Renewed uncertainty over Greece is hurting an already jittery euro," said Stuart Bennett, senior FX strategist at Credit Agricole. >>

 

 

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