By TraderVox.com
Tradervox.com (Dublin) – The 17-nation currency dropped against the greenback to almost eight-week low as concerns about Greece’s in ability to secure bailout funds rose in the market. This spurred fears of a possible Greek exit. The euro declined against major peers after Antonis Samaras, the Greek Prime Minister, indicated that the austerity measures proposed will be the last one. He said this as Greek parliament prepares to discuss the proposed spending cuts which include wage and pension cuts. The dollar Index continued with an upward trend as US prepares to vote tomorrow. The Australian dollar was up as retail sales reports showed a better-than-expected performance.
According to Imre Speizer, who is a strategist in Auckland at Westpac Banking Corp., there are increased concerns on the ability of Greece to secure extended bailout money as the governing coalition is seen to disagree more and more. Imre predicted the euro to continue dropping if the issues in Greece are not resolved. According to Samaras, the Greek Prime Minister, the Greek society will not be able to take any more spending cuts. In a speech to lawmakers of New Democracy Party, the Prime Minister indicated that the proposed measures are the last one the country will make. The latest package will be taken to parliament for the first vote on November 7.
Greece has been involved in discussions with troika, a group comprised of its international creditors, who have expressed their intention to keep Greece in euro region. The International Monetary Fund, European Central Bank and the European Union have been holding talks with Greece to come up with acceptable spending cuts for Greece to get bailout money. However, political leaders in Athens have continued to debate the terms of the latest package. The euro dropped by 0.4 percent against the dollar to trade at $1.2790 at the start of trading in London, after concerns rose of Greece position in euro area. The common currency fell by 0.5 percent to 102.73 yen.
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