REUTERS
The Euro sagged in value against the dollar on Tuesday as investors fretted over concerns that Greece will not be able to pay back the next tranche of EUR 300 million of the money it owes the IMF, and which is due on June 5.
On Tuesday morning the euro dropped to $1.0933, from $1.0977. The dollar against the yen rose to 121.85 yen compared to the previous closing price of 121.56 yen. The dollar index (the dollar exchange rate in a basket of six currencies of countries that are major trade partners of the United States) increased by 0.32% - to 96.70 points.
Investors are concerned that Greece won’t be able to pay the IMF on June 5 unless it receives extra financial aid from creditors, according to Bloomberg.
"Greece is heading into the endgame, and default remains a real possibility,” said Kengo Suzuki, chief currency strategist at Mizuho Securities Kengo Suzuki. The expert noted that the decline of the euro should encourage investors to buy the dollar.
As reported earlier, Greece is in talks with the European Union and the IMF on settlement of a debt of more than EUR 240 billion, resulting from bailout measures aimed at rescuing the Greek budget from sovereign default in 2010 and 2012. Creditors’ hopes that austerity measures would enable Greece to repay its debts have been dashed.