EUR Under Pressure After Greek IMF Repayment Comments

The euro has come under pressure on the foreign exchanges after leading Greek politicians warned the country would be unable to make its next debt repayment to the International Monetary Fund (IMF) on 5 June without a rapid deal with its creditors.

At the start of a crucial two-week period for Greece, the credit rating agency Moody’s said there was a high and increasing risk that the crisis stricken country would have to impose capital controls to stem capital flight from its banks.

The first hints of measures to prevent bank runs came as Reuters reported that the Syriza-led coalition in Athens was considering imposing a transaction tax on bank customers.

With the European central bank discussing whether to expand emergency lending to Greece, the single currency lost fresh ground against the US dollar – extending this week’s fall to 3%.

Investors are becoming alarmed at the prospect – fuelled by signs of a split in Syriza’s ranks – of Greece running out of money, defaulting on its debts and leaving the single currency.

via The Guardian

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