Bloomberg News

Greek Debt-Swap Negotiation Would Be Negative for Euro, RBS Says

September 29, 2011

Sept. 29 (Bloomberg) -- Any attempt by policy makers to alter Greece’s proposed voluntary swap of government debt securities would be likely to weigh on the euro, according to Royal Bank of Scotland Group Plc.

“The rollover created a storm of argument and market upheaval when it was first proposed,” said Greg Gibbs, a currency strategist in Sydney. “Reopening this wound creates a sense that political resolve and cohesion to deal with the sovereign debt crisis is still not great enough. The market’s patience with European policy makers is thin and any sign of delay and reluctance to support the European Monetary Union is negative for the euro.”

The euro rose 1 percent to $1.3671 at 9:21 a.m. in London, after trading at an eight-month low of $1.3363 on Sept. 26.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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