The euro continues to decline against the U.S. dollar, the Japanese yen and other major currencies as the speculation that Greece may reconsider its agreement to the rescue plan, involving European Union and International Monetary Fund support in easing its debt, sparked doubts in a strength of the E.U. economy and its currency.
The Greek officials received the information about the conditions on which the aid from the IMF will be offered and considered them to be too harsh, fearing that unbearable conditions may lead to civil unrest as people will be worried that the aid will do more harm than good. Despite the speculation about Greece bypassing the IMF involvement, the government officials denied this was their intention.
Whatever the real decision of the Greek officials may be, the rumors abound about Greece declining the IMF help and faltering E.U. plan for aiding Greece, and these concerns negatively affect the European currency. The IMF officials insist that their rescue plan for Greece doesn’t differ from plans for any other country and its offering will, as the managing director of the IMF put it, âbe an IMF program decided by the IMF as it happens with each and every countryâ.
EUR/USD tumbled to 1.3380 as of 18:23 GMT after opening at 1.3483. EUR/JPY dropped to 125.51 down from the opening level of 127.22. EUR/CAD traded near 1.3380.
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