Euro falls on Greek debt talk

Financial Times
April 18, 2011

The euro fell sharply on Monday on increased speculation over a restructuring of Greek government debt and after a poll in Finland raised concerns over Portugal’s bail-out.

The single currency fell on reports in the Greek press, later denied by the government, that Athens had asked the International Monetary Fund and the European Union to restructure its debt.

Also weighing on the euro were election results in Finland, which showed strong gains for the True Finns, a eurosceptic party that has vowed to block a rescue package for Portugal if it gains power.

Analysts said the vote was significant because it followed poor electoral performances from ruling parties in Germany and France, reflecting increased reluctance of voters in richer countries at the core of the eurozone to subsidise countries on its periphery.

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