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Forex - Euro sinks to 7-year lows against pound

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Investing.com -

Investing.com - The euro fell to seven year lows against the pound on Wednesday, pressured lower by concerns over whether Greece will reach a compromise deal with creditors to extend its bailout program.

EUR/GBP hit lows of 0.7396, the weakest level since January 2008, down from 0.7419 late Tuesday.

Greece was to hold crunch talks with European Union officials later in the day.

Greece's current bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling concerns that a conflict with international creditors could trigger the country's exit from the euro zone.

Athens was expected to ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace 30% of its massive bailout deal.

Prime Minister Alexis Tsipras's government won a confidence vote on Tuesday evening and reiterated that he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension.

In other trade, the euro was little changed against the dollar, with EUR/USD at 1.1310 and drifted higher against the yen, with EUR/JPY rising 0.23% to 135.51.

The yen weakened slightly earlier after Bank of Japan Governor Haruhiko Kuroda said the Group of 20 nations didn't criticize his banks monetary easing program, indicating that he is confident to continue with monetary stimulus.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, edged up to 94.92.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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