Greece ambiguity drags Euro down

Uncertainty of Monday’s Brussels meeting hits the shared currency as it weakens against the dollar

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The euro declined by 0.6 percent to $1.1137 EUR from Thursday's healthy high of $1.1392 which was driven by the soar in European economy and hike on euro zone bond yields. 

The 19-nation currency was struck prior to the  European finance ministers meeting on Monday were bailout deals and the Greek debt crisis will be discussed and International Monetary Funds (IMF) repayment deadline on Tuesday. 

"Greek-related headlines have begun filtering out over the weekend, and the debt negotiations will be one of this week's currency themes," said analyst. 

Eyes will be drawn to the Eurogroup meeting which will act as an indicator for Greece's economic outlook.

After being locked in talks with international lenders for months, Greece will try yet once again to strike a deal with international lenders to unlock the remaining €7.2 billion which expires in June. However, the European Central Bank (ECB) continues to insists on no deal unless a comprehensive and detailed list of reforms are laid out.

If Greece cannot gather enough funds to fulfill the international obligation to make a repayment of €770M to the Fund on Tuesday, and fails to gain assistance, negotiation talks will continue to drag and the cash strapped country will fall further into the darkness of Greek default or possible grexit.

Earlier this week, Greek Deputy Foreign Minister Euclid Tsakalotos, who now leads negotiation talks, stated that “any delay in achieving a compromise has to do with one and only one reason, and this is the political differences between the government and the institutions.”

TRTWorld and agencies