Source Pravda.Ru

Greece's debt problems still put heavy pressure on euro

Greece's debt problems still put heavy pressure on euro. 44328.jpegThe euro fell against the dollar on Friday but remained above a six-week low, finding some respite after commodities bounced off their overnight lows and as investors refocused their attention on the prospects for a further rise in euro zone interest rates.

But lingering worries about Greece's debt problems continued to weigh on the euro, which has shed roughly 5 percent from a peak near $1.4940 hit in early May, Reuters informs.

"All these countries will go bust at some stage," said Wilhelm Schroeder, a poll participant who helps manage the equivalent of about $172 million for Schroeder Equities GmbH in Munich. "I just can't see a scenario in which these countries get out of their debt problems."

The pessimism underscores how investors remain unconvinced that European policy makers can prevent the euro-area's first default even as they look to beef up Greece's 110 billion-euro rescue package ($156 billion). The cost of insuring against a Greek default reached a record this week as investors increased bets the country won't be able to make good on its borrowing, Bloomberg says.