Euro Falls to 6-Month Low, Swaps Show 90% Odds of Greek Default
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The euro fell to a six-month low versus the dollar and the yen rallied as Germany prepared plans to shore up the nation’s banks with credit-default swaps showing a more than 90 percent probability that Greece won’t meet its debt commitments.
The yen strengthened against the euro as investors sought the Japanese currency as a haven, even as Greek officials said the nation is committed to “full implementation” of its bailout agreement. The 17-nation euro weakened amid speculation the region’s central bank will dilute a proposal to wean distressed banks off its emergency funding. The Dollar Index headed for the biggest weekly gain since May 2010 after President Barack Obama detailed his $447 billion plan to boost hiring.