Share

Euro under pressure after Greek stock plunge

Tokyo - The euro was under pressure on Tuesday following a sell-off in New York as a plunge on the Greek stock market revived worries about Athens' future in the eurozone.

The single currency slipped to $1.0936 and ¥135.64 on Tuesday morning from $1.0954 and ¥135.82 in New York.
The dollar crept up to ¥124.09 from ¥123.99, but gains were held back by weak US and Chinese manufacturing data.

On Monday, Greece's stock exchange, resuming trade after a five-week shutdown, plunged around 20% at the open before finishing down 16.23% in its biggest single-day drop ever.

Adding to broader regional concerns, the 19-nation eurozone's inflation and jobless rate came in flat in July, according to data published on Friday, suggesting only modest growth.

"Concerns about the prospects for the EU economy are also putting pressure on the euro," said Shinya Harui, a Nomura Securities forex analyst.

"But a further gain in the dollar has been capped by negative US economic indicators."

Data on Monday showed slightly weaker US manufacturing activity and a modest gain in consumer spending.

The focus is now on Friday's jobs reports as investors look for the latest clues about the timing of a Federal Reserve interest rate hike - a plus for the dollar.

Markets are expecting a rise as early as September, but the US central bank said any move depends on signs of strengthening in the world's top economy.

Separately, a key gauge of Chinese manufacturing activity plunged to a two-year low in July, according to figures published on Monday, suggesting the world's second-largest economy is struggling.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
+1.3%
Rand - Pound
23.73
+0.9%
Rand - Euro
20.34
+1.1%
Rand - Aus dollar
12.39
+0.8%
Rand - Yen
0.12
+1.4%
Platinum
916.00
+0.4%
Palladium
1,011.00
+0.6%
Gold
2,328.15
+0.5%
Silver
27.40
+0.9%
Brent Crude
88.02
-0.5%
Top 40
68,562
-0.0%
All Share
74,492
-0.0%
Resource 10
61,691
+2.1%
Industrial 25
103,018
-1.0%
Financial 15
15,887
+0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders