Currency exchange markets see euro steady

The euro has steadied itself on the currency exchange markets, due in part to the bond deal made by Greece's government.

Against the dollar, the euro has slowed its decline and at 09:30 GMT on March 31st, the currency was trading at $1.34.

The currency had previously fallen sharply against the pound and the dollar due in part to Greece's dire sovereign debts.

However, the Mediterranean country's debt management agency has now struck a deal for €5 billion (£4.485 billion) worth of bonds, which it is thought will alleviate the immediate danger to the single currency area.

Petros Christodoulou, head of the PDMA, Greece's debt agency in Athens, was reported by Business Week as having said: "The crucial message to the market is that we successfully raised another decent benchmark-size new issue.

"We have prefunded the whole of April. Once the market digests that, it will realise that our refinancing risk is largely gone."

Investors have been encouraged not to ignore the risk of sovereign defaults on debts, but the situation has relaxed since Greece returned to the capital markets earlier this week (March 29th).

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Posted by Eleanor Ward