Dollar to plunge if Greece quits euro

Monday 21 May 2012

THE Australian dollar could fall below US90¢ if Greece pulls out of the eurozone, the chief currency strategist at Commonwealth Bank warned as leaders from the G8 group of nations worked over the weekend to combat the region's financial turmoil.

The dollar fell to US98.24¢ on Friday, its lowest level in nearly six months, after Moody's downgraded 16 Spanish banks, and the Fitch Ratings agency reduced Greece's credit rating to CCC on fears that anti-austerity parties would win the country's new elections.

Currency strategists say if Greece pulls out of the eurozone the dollar could fall much further.



Read more: http://www.smh.com.au/business/dollar-to-plunge-if-greece-quits-euro-20120520-1yz10.html#ixzz1vTVc3GWQ

- Gareth Hutchens, Sydney Morning Herald