Euro Falls as Greek Politicians Disagree on Austerity

The euro fell against the US dollar and slipped versus the Japanese yen before rebounding as Greek politicians were unable to reach an agreement about austerity measures required to secure a next portion of bailout.
Greece’s Prime Minister Lucas Papademos was meeting with leaders of Greek political parties yesterday to discuss tightening measured that the so-called troika (the EU, the ECB and the IMF) demanded from the country in exchange for rescue. Papademos said that the party leaders agreed on all measures except one (pension cuts). The Prime Minister explained that this issue will be discussed on the next meeting with the troika.
Finance ministers of eurozone countries will hold an emergency meeting in Brussels today. Meanwhile, traders are afraid that the disagreement about spending cuts may not only prevent Greece from receiving aid, but also may derail talks with bondholders.
EUR/USD fell from 1.3260 to 1.3241 as of 1:40 GMT today. USD/JPY slipped from 102.13 to 101.84 before rebounding to the opening level.

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