With the Euro failing in valuation against the dollar on Monday, there is an increased pessimism regarding the involved parties’ enthusiasm for the bailout extension of Greece.
Nevertheless the joint currency EURUSD was able to recover from day’s low by trading at $1.1351 from $1.1295. After weeks of stressed negotiations, the finance ministers of Eurozone were able to agree on a 4-month extension to the bailout program of Greece. This resulted as a rise in Euro valuation at $1.1430 on Friday. Kathleen Brooks who is a research director of UK stated, ‘ The Eurogroup is still pessimistic regarding the deal and therefore it has arranged a meeting on Tuesday with the Eurozone finance ministers. Brooks also believes that the Friday’s deal could still fall apart.
Greece has not submitted any reform proposals yet to its creditors- the IMF, the European Central Bank, and the European Commission- upon which the deal depends. Greek Minister Nikos Pappas has stated that the reforms will mainly include plans for the Greek civil service as well as the tax evaders.
The dollar had a slightly lower trade value against Yen when the January meeting of Bank of Japan reflected the concerns of several policy makers regarding the bond purchases program of central bank. The dollar was bought at 118.19 Yen down from 119.07 Yen on late Friday in New York. The pound had a gain against the dollar from $1.5399 to $1.5463 after Mark Carney, Governor of Bank of England, threw opinions at a Treasury select committee.