Greek Finance Minister Talks About Debt Swaps, Euro Rallies

The euro was trading broadly higher against other most-trading currencies today as concerns about the situation in Greece eased after the Greek government talked about a way it is going to handle its international debt.
Greek Finance Minister Yanis Varoufakis proposed a plan according to which outstanding debt will be swapped for new growth-linked bonds. This will allow to avoid a debt writedown and reduce risk for creditors.
The market welcomed the announcement as it showed that the government is willing to negotiate with creditors. Additionally, it looks like Greece is not planning to exit eurozone, and this is another reason for investors to be less concerned about the future of Greece and the whole eurozone.
Of course, not all issues have gone, especially as the Greek government is not willing to negotiate with the troika, but market participants feel themselves more relaxed for now.
EUR/USD advanced from 1.1340 to 1.1508 as of 18:38 GMT today. EUR/JPY climbed from 133.35 to 134.93 and EUR/GBP rose from 0.7537 to 0.7582.

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