Euro Increases against USD As Debt-Buyback is being Offered by Greece

Thanks to the Greek offer of spending as much as $13 billion to buy back the Government securities, the concerns over the Greece debt crisis has eased a bit. Hence, the Euro, the major currency of 17 countries in the Euro zone has shown a good increase against USD. Euro has actually surged by 0.5% and is priced at $1.3053 per Euro (This marks the highest figure for Euro against USD in the last 6 weeks). The currency has also increased against Yen by 0.3% and is priced at 107.43 Yen per Euro currently. Incidentally, the Dollar Index (This is used to track USD’s performance against the 6 US trading partners’ currencies) has plummeted to a 4-week low as well because the US lawmakers have strengthened their position on averting the so called fiscal cliff. In 2012, Euro has experienced a total fall of 1.6% so far. 

Incidentally, Greek Government has invited the bond holders to tender their securities in a modified Dutch auction. The average maximum price for the bonds was offered by PDMA. According to the European Head of Hedge Fund sales of Mizuho Corporate Bank, Neil Jones, Euro is doing well as there is at least some sort of positive news on Greece debt issue. He added that the key factor for Euro is the level of confidence in the debt front and for the time being, it looks sound enough. Neil commented that the argument over the US fiscal cliff has also helped Euro to gain over its US counterpart.

The Credit Suisse Group AG has decided to impose negative interest rates on certain bank accounts. The 2nd largest bank of Switzerland has reportedly distributed the notice in relation to this decision to the intended customers already. The decision will be implemented within the next 5 business days. According to many, this decision of Credit Suisse Group may increase the demand for Euro and investors can expect a major move in EUR-CHF price. This decision may also support Euro in holding up well against USD.
Incidentally, Euro has today gained around 0.4% against the Swiss Franc. This marks the best jump for Euro against CHF, since September, 2012. A Euro currently costs 1.2086 Swiss Francs. Not only against Yen, USD or CHF, but Euro has advanced against most of 16 other major currencies.