Euro Weighed Down by Greece Bailout as Stocks Retreat
The euro slipped on Tuesday following a media report that revealed prospects of Greece relinquishing its next bailout payment if creditors fail to meet a debt relief deal. Asian stocks continue to trade in thin volume due to holidays in some regional markets, the United States and the U.K.
The common currency fell 0.2 percent to $1.1136 in its third session in a row of declines following a German press report which stated that Athens might forego its next bailout payment.
Eurozone finance ministers have yet to reach an agreement with the International Monetary Fund regarding Greek debt relief to release fresh loans to Athens however, it did come close enough to do both at their meeting next month.
"The bailout payments are necessary to meet existing debt repayments due in July, so if Greece were to forgo this bailout payment the probability of a default would spike, reopening the discussion around a Grexit from the Euro-zone," according to James Woods, global investment analyst at Rivkin in Sydney.
Other factors that added pressure on the euro were European Central Bank President Mario Draghi reiterating the need to extend stimulus as well as the possibility of an early elections in Italy.
European blue-chip stocks dropped 0.2 percent the previous day, as Italy's banking index tumbled 3.4 percent, its largest loss in almost four months, after two banks sought help to cover a capital deficit.
MSCI's broadest index of Asia-Pacific shares excluding Japan was little changed early on Tuesday.
News are provided byInstaForex.