Tuesday, February 9, 2010
Traders and hedge funds are making record bets against the euro, underlining the mounting alarm over the region’s debt crisis.
Market players have bet almost £5billion that the value of the currency will fall against the U.S. dollar, the largest ‘short position’ since it was launched.
European governments have been drawing up plans for a possible bail-out of Greece, amid fears it could be spiralling towards debt default.
Worries about the health of public finances are also spreading to other countries.
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Speculators believe these states will be unable to meet their obligations to lenders and have taken up a short position on the currency.
More than 40,000 deals have been made betting against the single currency, according to analysis of figures from the Chicago Mercantile Exchange.
Some analysts claim the crisis is so deep the future of the euro could be put in peril, driving the value of the single currency lower.
This article was posted: Tuesday, February 9, 2010 at 9:58 am