Greece euro undermines Downgrade

01/14/2009 3:03:00 PM

Greece euro undermines Downgrade

The euro has again profits, the small increase, on Wednesday amid concerns on the situation of public finances of the economy on the periphery of the euro area.

Rating agency Standard & Poor’s public debt in Greece, citing the erosion of competitiveness and a growing fiscal deficit.

These reports, that Ireland has been to seek assistance from International Monetary Fund, if the deterioration of the economy has deteriorated.

The Irish authorities has been swift, as receivables. But, said one analyst reports worried investors because it was the first time, proposals were made that the IMF intervention would be needed in the euro area.

The reports on the cost of ammunition, as speculation of a Euro-exit may be an option for some members of the currency bloc.

In fact, Geoffrey Yu at UBS, said the report was another blow to monetary union.

He said, within the euro area has been increasing over the past year and the situation was not for the immediate future.

“We believe that further assessments of the measures is possible and represents a major threat to confidence in the euro, given that several important countries of debate and budget deficits,” said Yu.

“We used to see the euro under pressure to be.”

Immersion in the euro area, industrial production and the prospect of a rate cut by the European Central Bank after the meeting on Thursday also held policy of the euro in the failures.

The euro fell to 0.5 per cent of $ 1.3125 against the U.S. dollar, 0.9% to Y116.85 against the yen and lost 0.8% to £ 0.9025 against the pound sterling .

In other countries, the dollar under pressure after U.S. retail figures fell for the turnover more than expected in December.

The dollar fell to 0.5% against the yen Y89.01 and lost 0.3% to $ 1.4538 against the pound sterling.

In the meantime, Russia devalued the ruble for the third time in four days as part of an international test, in order of their currencies to a rapidly deteriorating economic outlook and the weakness of the oil market.

The Russian rubles are falling to 1.4 per cent of 36.28 against the euro-dollar basket, breaking the previous meeting of the Central Bank’s support level of 35.80.


Comments

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