EU session review: Euro Declines for Second Day on Greece, Finland

The euro fell for a second day against the dollar on speculation Greece will be unable to avoid a default, even after officials said debt restructuring isn’t being discussed.
The single currency declined to a two-week low versus the yen on concern election gains by Finland’s euro-skeptic bloc will hinder regional efforts to assist ailing nations, including Portugal and Ireland.
Greek bond yields surged to records.
“The latest developments in the euro region have a potential to provide hurdles for the euro,” said Jane Foley, a senior currency strategist at Rabobank International. “The situation in Finland has to be monitored very closely, because it’s reflecting a trend in the political landscape of the region. There’s clearly fear among voters that they have to pay for fiscal mistakes of others.”
Greece found support from IMF Managing Director Dominique Strauss-Kahn and French Finance Minister Christine Lagarde after German Finance Minister Wolfgang Schaeuble was quoted as saying “further measures may have to be taken” if Greece fails an audit in June.
New Zealand’s dollar dropped against all of its major counterparts as data showed consumer prices rose less than forecast.  New Zealand’s consumer prices rose 0.8% in the first quarter from three months earlier, the government said today. Economists forecast a 1% gain.

EUR/USD tries to recover, but reached $1.4390 only before was dragged down to a fresh session lows around $1.4265.


GBP/USD fell from $1.6310 to $1.6240. Later rate recovered to $1.6270.

USD/JPY printed lows around Y82.60 before it was back to Y82.90.