After a major fall yesterday, the euro was gaining ground vis-a-vis the greenback today, trading at 1.4055 as of around 8:40 A.M., GMT.
The single currency is up 0.572% on the day and has reached a session high of 1.4075 with a low of 1.3952 so far.
The European currency is reeling from the turmoil of the sovereign debt crisis in the euro zone and each new day seems to bring more bad news. Yesterday, Moody’s downgraded Ireland’s credit rating one notch to Ba1.
This weekend should be a decisive one with regards to the ongoing crisis because “investors will hear the conclusions of the current discussions in the euro zone and the announcement of the results of stress tests on European banks on Friday,” said Barclays Capital in a prepared statement.
Citing anonymous European politicians, the Financial Times Deutschland reported today that euro zone finance ministers plan to allow Greece to buy back its bonds. Currently, Greece would be receiving enough money from the European rescue mechanism, the EFSF, to buy back its bonds at 50% of their face value and reduce its debt from 150% of its GDP to 120%.