By: Barbara Zigah
Despite the Greek rescue package announcement this past weekend, the common currency slipped versus the Japanese Yen and U.S. Dollar in Asian trading today. Until the pa ckage is a fait accompli, it appears that investors will continue to be anxious over the potential hurdles Greece will have to face. The common currency traded against the Yen at 124.27 Yen, off from late Friday’s trade of 124.69 Yen. Versus the greenback, the Euro, which saw quick gains early in the trading session following the news of the bailout, traded at $1.3224, as reported at 1:52 p.m. (SGT) in Singapore.
According to one analyst in the U.K., a possible series of hurdles that the rescue package will be facing is individual approval from European parliaments. According to him, while the IMF can already begin funding the package, the final bailout amount will be uncertain until such time as all of the E.U. parliaments have made their commitment, one way or another. Investors are concerned about the possibility of a split among those nations in favor of the package (France, for example) and those nations not in favor (which includes Germany).
Trading is expected to be lackluster today, as many global markets are closed for the May Day holiday.