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Forex - Euro hits 2-week low vs. yen on Greek debt concerns

Published 04/18/2011, 04:45 AM
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Investing.com – The euro tumbled to a more than two-week low against the yen on Monday, weighed by speculation that Greece asked to restructure its debt and amid uncertainty over Portugal's bailout.

EUR/JPY hit 118.60 during European morning trade, the pair’s lowest since April 1; the pair subsequently consolidated at 118.88, tumbling 0.90%.

The pair was likely to find support at 117.66, the low of April 1 and resistance at 121.46, last Friday’s high.

The euro came under pressure after a Greek daily newspaper reported that Greece told the International Monetary Fund and the European Union earlier this month that it wanted to restructure its debt. The report was subsequently denied by a finance ministry source in Athens.

Meanwhile, this week’s negotiations over Portugal's bailout were thrown into doubt after an anti-euro party in Finland that has vowed to veto its rescue package made strong gains in a parliamentary election on Sunday.

Finland's parliament, unique in the euro zone, has the right to vote on European Union requests for bailout funds.

The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.25% to hit 1.2844.

Later in the day, the euro zone was to release official data on consumer confidence.

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