Investing.com – The euro tumbled to a seven-day low against the yen on Thursday, amid fresh concerns over the euro zone sovereign debt crisis after German Finance Minister Wolfgang Schaeuble said Greece may have to restructure its debt.
EUR/JPY hit 119.63 during European early afternoon trade, the pair’s lowest since April 5; the pair subsequently consolidated at 119.65, tumbling 1.17%.
The pair was likely to find support at 119.16, the low of April 4 and resistance at 122.15, Wednesday’s high.
In an interview with German newspaper Die Welt, Mr. Schaeuble said Greece may need to take action if a June audit by the European Commission and the European Central Bank shows the nation's debt burden isn't sustainable.
“We will have to do something” if the review by the International Monetary Fund and European authorities in June raises doubts about Greece’s “debt sustainability,” Schaeuble said. “Then, further measures will have to be taken.”
Following the remarks, the cost of insuring Greek government debt against default surged to a euro era-lifetime high.
The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.68% to hit 1.2857.
Also Thursday, in its monthly bulletin the ECB maintained its hawkish stance on inflation after last weeks rate increase, warning that it sees "upside risks" to price stability and will continue to monitor inflation "very closely."
"It is essential that the recent price developments do not give rise to broad-based inflationary pressures over the medium term," the ECB said.
EUR/JPY hit 119.63 during European early afternoon trade, the pair’s lowest since April 5; the pair subsequently consolidated at 119.65, tumbling 1.17%.
The pair was likely to find support at 119.16, the low of April 4 and resistance at 122.15, Wednesday’s high.
In an interview with German newspaper Die Welt, Mr. Schaeuble said Greece may need to take action if a June audit by the European Commission and the European Central Bank shows the nation's debt burden isn't sustainable.
“We will have to do something” if the review by the International Monetary Fund and European authorities in June raises doubts about Greece’s “debt sustainability,” Schaeuble said. “Then, further measures will have to be taken.”
Following the remarks, the cost of insuring Greek government debt against default surged to a euro era-lifetime high.
The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.68% to hit 1.2857.
Also Thursday, in its monthly bulletin the ECB maintained its hawkish stance on inflation after last weeks rate increase, warning that it sees "upside risks" to price stability and will continue to monitor inflation "very closely."
"It is essential that the recent price developments do not give rise to broad-based inflationary pressures over the medium term," the ECB said.