Greece causing Euro (EUR) to drop against US Dollar (USD)
While most major economies are trying to revive themselves from the financial crisis which shocked the world in Oct 2008, another mini-crisis occurred recently when President Obama mooted plan to further control and constrict major financial institutions (Banks and Hedge funds) for reaching a critical size that will enable them to weld substantial market influence.
Another spanner was thrown by Greece recently, howbeit it only affects the Euro zone.
One of the countries in Europe which had already adopted the Euro as the national currency, Greece financial stability came under scrutiny recently due to concerns if the Greek government can actually pay off the national debt and guarantee the levelling of government bonds.
Things cumulated into a jittery forex trading market on 28th Jan 2010 when a sell-off of Euro began, enabling forex traders who punt on the US Dollar smiling all the way to the bank.
The Euro was trading at 1 Euro = 1.4019 US Dollar just the day before, before a steep fall led to an exchange rate of 1 Euro compared against 1.3938 US Dollar. And there are no signs of the Euro decline abating unless there are any positive measures and actions adopted by Greece rather than pure rhetoric and assurance messages.
Therefore, tourist traveling to Europe/Greece might want to hold off exchanging their US Dollar/Japanese Yen or other currencies into Euro just yet. Another jittery should potentially send the Euro past its Jul 2009 low against the US Dollar and bring yet more smile to non-Euro residents and further grieve to the Euro-zone.
