Conjecture about a Greek exit from the euro zone following weekend elections dragged down the value of the common currency of the European Union on Tuesday, marking the seventh-straight day of losses for the embattled monetary unit, according to Bloomberg.
But The Wall Street Journal reports the monetary unit did show some signs of stability on Tuesday, tempering losses against the U.S. dollar after larger losses on Monday in the aftermath of voters opting against political parties that support austerity measures.
The Aegean nation has accepted two tranches of bailout aid during the past two-plus years while under attack from the sovereign debt crisis.
"They passed on the mandate to the second-biggest political group, which is against austerity and hence by default for an exit out of the euro zone," states a client note authored by senior foreign-exchange strategist Sebastien Galy with Societe Generale in New York, according to Bloomberg. "The grenade has been passed on, the pin is removed as it has been for the past two years."
Whether the U.S. Federal Reserve will intervene to spur the globe's largest economic system is one factor that helped temper losses to the euro, according to The Wall Street Journal.
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