The euro extended higher late on Monday as markets hope that there will be more progress over the debt negotiation talks now that Greek Finance minister Yanis Varoufakis was sidelined from being in charge of the talks.
Deputy Foreign Minister and economist Euclid Tsakalotos has been placed as head of the negotiating team and will be speaking face to face with Greece’s lenders.
After three months in power, the new Syriza-led government in Greece has made no progress in debt negotiation talks and reforms needed so that the government can receive much needed bailout funds. Greece has debt payment so make in May and in order to avoid bankruptcy it needs to to unlock 7.2 billion euros worth of rescue funds.
After months of negotiations failing to make headway, Monday’s announcement was, however, seen as a conciliatory move. Greek shares rallied with the Athens stock exchange closing the day up 4.4%. Two-year bonds yields also fell 250 basis points to a two-week low of 23.55%. The euro hit its highest level since April 7 at $1.0925.
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