The dollar is weaker today and touched a 3 week low as investors wait for signs about when the U.S. central bank will begin to raise interest rates.
Most economists are not expecting the Fed to begin raising interest rates until late 2015 or early 2016.
The euro rallied yesterday against the dollar after Greek PM Alexis Tsipras sidelined outspoken Greek Finance Minister Yanis Varoufakis on Monday and appointed Deputy Foreign Minister Euclid Tsakalotos to lead a new group in charge of coordinating with Greece’s lenders over a new bailout package.
A Marxist intellectual known for his tirades against Greece’s international creditors and Eurozone finance ministers, Greek Finance Minister Varoufakis was called a “time-waster, a gambler and an amateur” just last week at a finance meeting in Riga, Latvia.
Varoufakis’ unyielding approach made negotiations difficult and set Greece back after deposit outflows in Greek banks reached alarming levels, yields on Greece’s short term bonds soared over 20 percent, and the threat of default increased with the passing of each day.
Even with the recent shift in leadership, Greece’s leftist government must still decide whether to embrace the reform measures that Greece’s creditors are requiring as a condition of a €7.2 billion bailout package that is sorely needed to keep the cash strapped country from defaulting on its loans and paying Greek pensions and salaries.
Before a T.V. audience on Monday night on Star T.V., Greek PM Alexis Tsipras lashed out against the ECB and Euro Group President Jeroen Dijsselbloem, accusing them of breaking promises and treating Greece unfairly.