The euro fell sharply in late trading last night amid rumours that Greece may try to exit the eurozone.Investors sold stocks of the single currency after a report in the online edition of German publication Der Spiegel claimed the debt crisis in Greece had taken a dramatic twist.
It reported that finance ministers and European Commission representatives were holding secret crisis meetings in Luxembourg last night.
The claims were immediately denied by Greece and the EU.
However, European officials had denied the existence of bailouts that later materialised.
Greece was the first of three eurozone countries to have taken a bailout from the EU and International Monetary Fund. Ireland and Portugal have since sought help.
The Spiegel website said: ‘Greece’s economic problems are massive, with protests against the government being held almost daily.
‘Now Prime Minister George Papandreou apparently feels he has no other option. Spiegel Online has obtained information from German government sources [with knowledge of the situation] in Athens indicating that [his] government is considering abandoning the euro and reintroducing its own currency.’
The report sent the euro tumbling to $1.4408, from $1.4530 on Thursday. Read More
