The euro finished the week lower against the US dollar and other key counterparts, hounded by ongoing turmoil in Greek debt markets and the tangible risk that Greece would require financial bailouts from the International Monetary Fund and fellow European Monetary Union members.
A Bloomberg News survey shows all of the 21 economists polled forecast the Bank of Japan to hold the benchmark interest rate at 0.10 percent next Wednesday as policy makers aim to balance the risks for the economy.
The US dollar finished the week as the top-performing G10 currency, staging a noteworthy rally against the euro, Japanese yen, and other key counterparts.
The US dollar fell against all G10 currencies except for the Japanese yen, breaking out of its tight range against the euro and testing its recent lows in the trade-weighted US Dollar index.
The euro is at somewhat of an impasse. It remains in a fairly pronounced medium-term downtrend against the US dollar in the context of many years of strength.
Indecisive financial markets made price action especially hard to predict and kept the euro in a choppy range until the US Federal Reserve surprised markets and raised borrowing costs for banks on Thursday.
Greece is in special danger not only due to the sheer size of the fiscal deficit as a percentage of GDP, but any political efforts to institute cuts in spending and rein in the deficit have been met with fierce popular opposition.
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