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Reuters reports that the Frankfurter Allgemeine Zeitung has published claims that the International Monetary Fund (IMF) will not be paying its share of a fifth tranche of aid to Greece at the end of June, which would have serious implications for the single currency.
As a result, the euro's value fell against the greenback to $1.4390, but has since recovered to a four-week high of $1.4448 due to a lack of trust in the uncorroborated report among traders.
Moreover, Greek newspaper Kathimerini subsequently published a further claim that details of the Greek government's mid-term fiscal plan will be finalised within the next 48 hours.
Adam Myers, senior currency strategist at Credit Agricole, said: "It is still not clear whether the IMF will stop the next tranche or not."
This comes after Niels Christensen, FX strategist at Nordea, told Reuters earlier this week that the market will remain hesitant over the euro's prospects until the IMF's stance is spelled out.
Posted by Greg Secker
