Futures Market News
Euro drops as Greek flight falls under serious consideration
May 14, 2012 10:34 AM
The possible departure of Greece from the euro zone bloc is under discussion by officials and leaders in the 17-nation bloc, pulling down the value of the shared currency to its lowest level in more than three months, Bloomberg reports.
The embattled monetary unit also fell against the Japanese yen, marking a second consecutive session of losses to the currency of the Pacific Rim nation. Industrial production in the euro zone fell during March, an unanticipated development that also damaged the euro, according to the European Union.
"It feels like we are coming to some sort of denouement, it looks increasingly likely Greece will have to leave (the euro zone). This is what is going to blight the markets for the next few weeks," said Neil Mellor, FX strategist at Bank of New York Mellon. "The short-term target in the euro is the 2012 low and there is very little standing in the way of some fairly big falls."
For the 11th consecutive trading session, the Dollar Index - a gauge of how the greenback performs against six counterpart monetary units - increased.
The common currency was approaching its lowest rate in almost 120 days against the U.S. dollar, according to Reuters. Those losses pushed investors toward the Japanese yen as well.
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