Monday, May 21, 2012
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Adds to uncertainty over possible fresh Greek aid measures

The euro hovered near a seven-week low against the dollar on Monday as investors sought clarity over how fresh talks on further aid for highly indebted euro zone countries might pan out.

 The euro skidded to lowest levels since late March at $1.4048 EUR= in Asian trade as news that IMF chief Dominique Strauss-Kahn had been accused of attempted rape added to the uncertainty.

 Strauss-Kahn had been due to meet German Chancellor Angela Merkel on Sunday and join euro zone finance ministers on Monday to discuss the bloc's debt crisis and how to handle Greece, which is struggling to meet the terms of a 110 billion euro European Union/IMF bailout granted last year.

 Traders said the euro's fall met with strong demand from Asian sovereign accounts who were still keen to buy on dips in the single currency. This helped the euro to bounce back to $1.4140 in European trade, up around 0.1 percent on the day. more

 

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