Thursday 21 September 2017

Euro softens further as nervous Asia awaits Greek developments

US Treasury Secretary attends EU meeting

German Chancellor Angela Merkel and French President Nicolas Sarkozy. Photo: Getty Images
German Chancellor Angela Merkel and French President Nicolas Sarkozy. Photo: Getty Images
EU economic commissioner Ollie Rehn. Photo: Getty Images

THE euro eased in Asian trade today, weighed by continued nervousness about the Greece's debt crisis.

This was in despite France and Germany giving their full backing to Athens.



The euro slipped to $1.3720 in Tokyo, from $1.3750 yesterday.



It was also lower against the Japanese unit.



But in a much-needed vote of confidence for debt-wracked Greece, German Chancellor Merkel and French President Sarkozy said they were convinced the country's future lay within the euro family.



Persistent expectations of a Greek default - or even an exit from the euro - continued to shake the markets.



Investors are looking to an informal meeting of EU finance ministers and central bankers this evening and tomorrow. In an unusual move, US Treasury Secretary Timothy Geithner will attend.



This is a strong indicator of Washington’s unease.



The meeting in the southwestern Polish city of Wroclaw comes amid mounting pressure for eurozone countries to get a grip on the crisis.



The meeting takes place as Commissioner Olli Rehn prepares to publish the European Commission's interim economic forecast this morning.



Euro zone economic growth in the first quarter of 2011 fell away in the second.



Market analysts will be keen to find out what projections are being made by Brussels for the rest of the year.

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