FOREX-Greece concerns push euro down 1 pct

* Euro suffers on Greek CDS rise, bond yield spreads widen

* Euro falls 1 pct on day vs yen, hits week’s low vs dollar

* Dollar recovers from early losses on strong China GDP

(Adds new quotes, update prices)

By Natsuko Waki

LONDON, April 15 (BestGrowthStock) – The euro fell (Read more about the trembling euro. ) nearly one
percent against the dollar and yen on Thursday as the cost of
insuring against a Greek default rose, highlighting persistent
concerns about how Greece will service its debt.

The dollar rose broadly, a day after stronger-than-expected
corporate results and strong data pushed U.S. stocks (Read more about the stock market today. ) up for a
fifth straight day of gains on Wednesday.

The euro was on track for its biggest one-day fall in three
weeks against the dollar as the Greek/German government bond
yield spread also widened to near record levels hit before euro
zone members agreed a standby aid package for Greece.

Ministers agreed to make available 30 billion euros in loans
with a further 15 billion coming from the International Monetary
Fund but markets remain concerned about uncertainty over how the
financial assistance would be implemented.

“We see yields on Greek government bonds edging higher and
certainly that issue is still very much in the market even
though we have the package from the EU/IMF,” said Svere Holvek,
currency strategist at Danske Bank.

“There is still a concern whether Greece could finance debt
in the longer term. The outlook for growth is not optimistic

By 1140 GMT, the euro (EUR=: ) was down nearly a full percent
on the day to $1.3520, its lowest of the week. It traded more
than a U.S. cent below the day’s high of $1.3666.

The euro (EURJPY=R: ) fell more than 1 percent to 125.84 yen,
with traders citing selling by U.S. investment banks.

Five-year Greek credit default swap prices rose to 455 basis
points, exceeding a record closing high of 444 basis points hit
a week ago.

Some in the market said selling by Middle Eastern names was
helping push the euro lower against the dollar, and that a break
through stop-loss orders around $1.3575 and below had
exacerbated losses.
The dollar (.DXY: ) rose 0.6 percent against a currency basket
to 80.700, recovering from a four-week low of 80.031 hit on
Wednesday. It was down slightly at 93.08 yen (JPY=: ).


Key companies reporting first-quarter earnings later include
Google (GOOG.O: ). General Electric (GE.N: ) and Bank of America
(BAC.N: ) are due on Friday.

Strong results could change the Federal Reserve’s position,
reiterated by Fed Chairman Ben Bernanke on Wednesday, that U.S.
interest rates would stay low for an extended period.

The dollar recovered from earlier losses triggered after
strong Chinese economic data ramped up speculation of a yuan
revaluation, which is seen as negative for the dollar.

Data earlier on Thursday showed China’s economic growth
accelerated in the first quarter to 11.9 percent, the fastest
annual pace in nearly three years, and consumer price inflation
in March decelerated. [ID:nBJL002018]

Analysts said improvement in the Chinese economy would
bolster the argument for a strong yuan, and that the exchange
rate may soon be freed up somewhat. Such a move is seen boosting
Asian currencies to the detriment of the dollar.

“Our expectations are for a revaluation around mid-year, but
now we see a risk of this happening earlier in the Q2,” said
Sven Schubert, currency analyst at Credit Suisse in Zurich.

Stock Market Money

FOREX-Greece concerns push euro down 1 pct