Greece Situation Leads to Increased Volatility

Currency volatility increased for a second day as international creditors pressed Greece to reach agreement on meeting the nation’s funding needs.

The euro approached an 11-year low against the dollar as German Finance Minister Wolfgang Schaeuble doused the outlook for a positive outcome for Greece at an emergency meeting with its official creditors Wednesday. Greek Finance Minister Yanis Varoufakis told lawmakers Monday the government intends to neither tear up the existing bailout agreement, nor allow the budget to be derailed.

“We expect them to come to an agreement that’s palatable to both parties, but there’s going to be volatility and there’s going to be noise,” said Jennifer Vail, head of fixed-income research at U.S. Bank Wealth Management, which manages $122 billion in assets.

Bloomberg