Learn How News Of The Greek Crisis Rescue Buoyed The Euro Directly At Gold-Coin.com
April 12, 2010 - Immediate was the reaction of the Euro to the report that finance and central bank officials of the 16-nation members of the European Union had come to terms on a rescue package for Greece. The report apparently eased the pressure on the Euro, which jumped Friday to $1.3462, an increase of 0.8%.
The meeting was held last week in Brussels. No details of the rescue package had been released, however, until this time. The report made no mention of any IMF participation whose assistance had been the subject of interesting discussions and speculation.
It will be recalled that our update of April 7 mentioned a report that the Euro dropped 0.6% against the dollar on April 6 from $1.3484 to $1.3399. The Euro had lost over 6% against the dollar and close to 6% against the yen so far this year.
It will not only be the Euro that would be relieved by the reported rescue but other currencies as well. There are 16 currencies that are the most active trade counterparts of the Euro.
The Greek rescue report is expected to have a wide ripple effect on various sectors which may be felt in the next few days.
Meanwhile, another currency is also making news – the Yuan whose devaluation is being sought by other major economies led by the US for its devaluation. Before formal negotiations could start, however, China announced its first trade deficit in six years. The March trade deficit was reported at $7.24 billion, a dive from the February surplus of $7.61 in February. Observers believe that this development had complicated the issue.
Michael Williams
Senior Staff Writer - Gold-Coin.com
