The euro ended Friday lower as the short-term proposal to Greece from its international creditors was rejected, leaving just a few days to find a solution to the Greek debt woes before the troubled country runs out of money.
The deal proposed to Greece included tax and pension reforms in exchange for a bailout package that would allow the nation to repay a part of its debt. Yet Greek officials were not satisfied with the proposal that did not include debt cut and a longer term for debt repayment.
Now, traders wait for the meeting of the eurozone finance ministers on Saturday to see if it will bring some new developments. Time is an issue as the deadline for Greece to fulfill its obligations is set to June 30.
Some economists speculate that the eurozone will fare better without Greece, and the exit of the country from the currency union would benefit the euro. But for now the shared currency suffers from uncertainty surrounding the current situation.
EUR/USD dropped from 1.1204 to close at 1.1169. EUR/GBP declined from 0.7113 to 0.7094 and EUR/JPY fell from 138.51 to 138.26.
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