Dubai: Concerns over Greece’s inability to pay its creditors weighed on euro as it hit its lowest level in a month on Tuesday. A stronger dollar also weighed on stocks and gold.
Cash-strapped Greece could avoid paying back the IMF on June 5 and win more time to negotiate a funding deal without defaulting if it lumps together all IMF repayments due in June and pays them at the end of the month, reports said.
The euro fell 0.63 per cent to be at 1.0909 against the dollar, after hitting a one month low of 1.0885 earlier in the session.
“Euro is looking weak, but we’ll need to see strong data out of the US next week to keep the momentum up for a test of the sub-1.0500 lows,” John Hardy, head of forex strategy, Saxo Bank told Gulf News.
“Over the long-term, euro may come on parity with the dollar,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts, adding “Euro has very strong support at 1.07 against the dollar.”
European equity markets were also down 0.28-1.41 per cent due to concerns on Greece. In the US, Dow Jones Industrial Average also fell 0.87 per cent to be at 18,072.67, while S&P 500 index was 0.68 per cent lower at 2,111.61.
Spot gold also fell nearly 1 per cent. International spot gold fell 1.49 per cent to $1,188.63 per ounce. “I expect more weakness in gold and it may touch the levels of $1,144/1,067 by next quarter,” said Al Ashri.
