The euro, which hit a two-month low against the
dollar on Tuesday as hopes that Greece would receive essential aid soon
faded, faces further losses as concern about Greece’s future grow,
currency analysts warn.
The International Monetary Fund and euro zone officials on Monday failed to agree to a long-term plan to cut Greece’s debt, preventing the release of immediate aid to Athens and pushing the euro [JPY=X
79.46
-0.02
(-0.03%)
] to a low of $1.2681 in Asian trade.
-0.02
(-0.03%)
] to a low of $1.2681 in Asian trade.
Now
more losses could be in store for the single currency, which has
already shed 3.7 percent of its value against the dollar since hitting a
peak in mid-September.
“It’s
been a very protracted process and we have to say that it’s taken
rather longer than we had anticipated,” Sean Callow, senior currency
strategist with Westpac Bank in Sydney told CNBC Asia’s “Squawk Box” on Tuesday, referring to the negotiations over Greece.
“We’re
becoming increasingly bearish on the euro and we have pretty much given
up on our previous expectation for it to recapture $1.30,” he added.
The
euro zone is facing pressure to ink a deal on Greece as Athens has to
redeem 5 billion euros ($6.35 billion) worth of treasury bills on
November 16 and was dependent on funds from the next euro zone aid
tranche to tide it over.
Read more: http://www.cnbc.com/id/49798109
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