Euro un­der pres­sure af­ter steep Greek stock plunge

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

The euro was un­der pres­sure Tues­day fol­low­ing a sell-off in New York as a plunge on the Greek stock mar­ket re­vived wor­ries about Athens fu­ture in the eu­ro­zone.

The sin­gle cur­rency slipped to $1.0936 and 135.64 yen Tues­day morn­ing from $1.0954 and 135.82 yen in New York. The dol­lar crept up to 124.09 yen from 123.99 yen, but gains were held back by weak US and Chi­nese man­u­fac­tur­ing data.

On Mon­day, Greece s stock ex­change, re­sum­ing trade af­ter a five-week shut­down, plunged around 20 per­cent at the open be­fore fin­ish­ing down 16.23 per­cent in its big­gest sin­gle-day drop ever.

Adding to broader re­gional con­cerns, the 19-na­tion eu­ro­zone s in­fla­tion and job­less rate came in flat in July, ac­cord­ing to data pub­lished on Fri­day, sug­gest­ing only mod­est growth.

"Con­cerns about the prospects for the EU econ­omy are also putting pres­sure on the euro," said Shinya Harui, a No­mura Se­cu­ri­ties forex an­a­lyst. "But a fur­ther gain in the dol­lar has been capped by neg­a­tive US eco­nomic in­di­ca­tors." Data on Mon­day showed slightly weaker US man­u­fac­tur­ing ac­tiv­ity and a mod­est gain in con­sumer spend­ing.

The fo­cus is now on Fri­day s jobs re­ports as in­vestors look for the latest clues about the tim­ing of a Fed­eral Re­serve in­ter­est rate hike -- a plus for the dol­lar.

Mar­kets are ex­pect­ing a rise as early as Septem­ber, but the US cen­tral bank said any move de­pends on signs of strengthen- ing in the world s top econ­omy.

Sep­a­rately, a key gauge of Chi­nese man­u­fac­tur­ing ac­tiv­ity plunged to a two-year low in July, ac­cord­ing to fig­ures pub­lished Mon­day, sug­gest­ing the world s sec­ond-largest econ­omy is strug­gling.

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