Posted on 04/23/2010 12:23:53 AM PDT by bruinbirdman
1:43 a.m.
Concerns that the Group of 20 industrialized and developed nations may not come up with an effective plan to address Greece's debt problems prodded short-term investors to sell the euro in Asia Friday, sending the currency to its lowest level against the dollar in nearly a year.
In morning trade in Japan, the euro dropped to $1.3201, its lowest level since April 30, 2009. Dealers said mounting anxiety that Greece could default on its debt may drag the common currency below $1.3000 next week.
The focus throughout Asian trading was on the possible outcome of discussions among top G-20 officials in Washington later in the global day.
"The worst scenario for the euro would be if after the G-20 we still can't see any compelling plan to get Greece out of this mess," said Yuichiro Harada, a senior vice president in the forex division of Mizuho Corporate Bank. Even if the talks yield any detailed plans for a bailout, "that may still be negative for the euro in the longer-term as in essence it would merely mean printing more money in the euro-zone, which would be bad for the currency," Harada said.
At 0450 GMT, the euro stood at $1.3238, down from $1.3311 late Thursday in New York. Against the yen, the European single unit traded hands at Y123.64, compared with Y124.52. The euro's weakness sent the ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies including the euro, up to 81.897 from 81.572.
(Excerpt) Read more at marketwatch.com ...
Go baby go! Good for me as it lowers my rent!
yitbos
There’s a whole lot of bond risk chatter going on all over the West along with fear about where interest rates may go. ...and fear in the East about what might happen with currency adjustments. Some US merchants, BTW, were talking about having stored some extra inventory at the end of last year. Hopefully, good guesses for the next year or two will come out of that for a few individuals. I wonder what things will look like between now and a little over a year from now.
Greece has been witnessing capital flight. With euro falling currency seeks stability. US 10yr-Treasury yields have fallen to 3.78%. 10yr Bund is up .02 to 3.09. Gilt 10yr 4.03, up .009.
yitbos
I’d be surprised if Greece doesn’t default this weekend. Nobody’s buying the BS any more from them or the EU, and Greek bonds are tanking exponentially.
Greece Asks for EU/IMF Aid to Be Activated
Published: Friday, 23 Apr 2010 | 6:17 AM ET
http://www.cnbc.com/id/36731623
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