Euro Exchange Rate News

Greece Downgraded to Emerging Market Status

Since the onset of the global economic crisis in 2008 Greece has been one of the most hard-hit Eurozone nations. Crippling levels of public debt, record high unemployment, a lingering recession, political instability and social unrest has led to two European Union-led bailout packages – but not that much economic improvement.

Now Greece has become the first developed nation to have its status cut to emerging-market.

According to MSCI Inc, who were responsible for the downgrade, Greece has failed to reach certain criteria when it comes to securities borrowing and lending facilities, short selling and transferability.

The local stock index has also dropped by a staggering 83 per cent over the past six years.

Greece has been locked out of bond markets since mid-2010 and was put under review by MSCI in June 2012.

According to one industry expert: ‘We’re already seeing money heading back to safe havens and the MSCI decision may exacerbate that. Greece’s downgrade brings them back to the forefront and it’s a sign that the crisis in Europe is far from over.’

However, despite this development the Euro pushed above 1.33 against the US Dollar overnight.

One forex expert attributed the Euro’s gains as resulting from declining expectations regarding the European Central Bank issuing a further rate cut.

The common currency was little changed following the publication of German CPI figures, which were largely in line with expectations, but it could experience volatility after the release of industrial production figures for the Eurozone.

The ECB’s monthly report, due out tomorrow, will also be of interest.

Euro (EUR) Exchange Rates As of 08:45 –

The Euro/US Dollar Exchange Rate is currently in the region of: 1.3318 >

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8506 <

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4036 <

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6847 <

 

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