24th January 2012
An offer by private creditors to restructure Greek debt has been rejected by eurozone ministers and this has led to a setback for the single currency.
So far in forex trading today (January 24th), Reuters reports the euro has slipped from a three-week high of $1.3053 and is now steady at around $1.3025.
Eurozone ministers had been offered a debt swap offer, but rejected the deal on the basis that the coupon demanded by bondholders was excessive.
"Short positioning hasn't been taken away in the euro and I wouldn't want to discount a further rally from here but in the medium-term our core view remains for euro/dollar to fall back to $1.17 by mid-year," commented Lauren Rosborough, senior currency strategist at Societe Generale.
Yesterday, the news provider reported rumours had emerged of the possibility that EU investors and the International Monetary Fund could provide the majority of any debt deal to bailout the beleaguered nation, but this has now been shown to be unlikely.
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