Currency

According to an article at economic-stock market ZeroHedge blog, the fate of Greece is expected to be decided in the coming days.
According to the article the three scenarios have as follows:

Expectations that the European Central Bank will ease its policy toward Athens slightly after the prime minister’s meetings with top European officials, thus allowing for more cash to Greece, sent local stocks higher on Monday.

The euro slipped on Monday ahead of more talks aimed at solving Greece?s debt crisis, while investors also eye a slate of speeches by Federal Reserve officials for further clues about the timing of an interest rate hike.

The single currency eased to $1.0787 and 129.55 yen on Monday from $1.0821 and 129.98 yen in New York on Friday.

Investors seek to be less exposed to the fluctuations of the Eurozone, by restructuring their portfolios, while, according to the Wall Street Journal, the Euro is being pressured, propping up the value of the US dollar.

The stronger U.S. dollar has stemmed external pressures in some countries from signs of weaker currencies and falling foreign exchange reserves.

In a report published on March 23, Moody?s Investor Service said external pressures in some countries are translating to capital outflows or significantly lower inflows as the U.S. dollar hurts countries with large external funding needs.

Golden Sachs, leading global investment banking, securities and investment management firm, states that the euro will drop beneath the US dollar on account of uncertainty in Greece and southern EU member states.

Now that the lira and other emerging market (EM) currencies have somewhat stabilized, at least for the moment, it may be useful to try to understand why some underperformed, while others overperformed, peers.

Were Greece to leave the euro, it would not have the same impact on the euro zone as it would have had two years ago, an ECB policymaker said on Monday, urging Greece's government to provide «numbers» so that aid could be provided to the country.

By Marius Zaharia

Euro zone government bond yields fell on Friday, with the European Central Bank's bond buying splurge reducing Greece's cash crunch to a sideshow for the moment.

BELGRADE - The Serbian dinar strengthened by 0.1 percent on Friday, thus setting the official middle exchange rate at RSD 119.9507, which the first time after four months that the dinar value is below the psychological level of RSD 120, and this figure constitutes the highest value the national currency achieved since the beginning of the year.