Euro Plunges As Greek Uncertainty Continues
May 20, 2011 8:53 AM
The Euro (EUR) is getting hammered today across the board as investors stay very worried with the prospect of the Greek government debt restructuring talks, while Spain, another one of the debt hit Euro zone countries is getting ready for the elections, adding to the risk-off mood in the markets.
The European Central Bank fueled the issue further, saying that it would not accept Greek bonds as collateral for loans if the European governments decide to restructure the Greek debt. The statement triggered a big Euro sell-off, as the ECB resistance against the restructuring will further complicate solving of the everlasting sovereign debt problems in Euro zone.
The European currency fell sharply against all of its major counterparts including the US Dollar (USD), Japanese Yen (JPY) and the British Pound (GBP).
The EUR/USD currency pair fell from 1.4345 all the way to 1.4210 and the EUR/JPY from 117.16 to 116.10. The EUR/GBP, meanwhile, dropped from 0.8837 to 0.8758.
