Currency exchange affected by Greek debt

The currency exchange markets have been affected by developments in Greece's debt crisis.

Rating agency Standard & Poor's this week downgraded Greece's debt rating from to BB+ from BBB-, effectively declaring any bonds as 'junk'.

A quick decline in the euro's value on the currency exchange markets followed due to concern over the bail out plan organised by the International Monetary Fund and other eurozone countries.

Germany's uncertain participation has proven to be a particular point of contention.

However, sterling has widely gained on the currency exchange markets this week as a result of the euro's difficulties.

But concerns over a hung parliament result once again took a hold of the British currency this morning (April 28th).

Sterling was starting to drop against the euro at 08:30 GMT, with €1 buying £0.86.

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Posted by Sarah Pitton