Euro makes gains despite Greece’s ongoing recession woes
City Index November 14, 2012 10:15 PM
<p>The euro has slipped in forex trading as Greece’s recession deepens over the course of the third quarter.</p>
The euro has made gains versus both its main trading partners the dollar and pound this afternoon (November 14th), despite the fact Greece has sunk deeper into the recession mire.
Over the course of the third quarter of the year, the economy shrank by 7.2 per cent compared to the same period last year, Elstat reported, which is a bigger contraction than the 6.3 per cent fall seen in the March-June quarter.
Greece is currently waiting to receive its next tranche of rescue funding worth €31.5 billion (£25.2 billion) and policymakers in Athens have just backed 2013's budget, which features harsh austerity measures including shaving pension packages, job cuts and government savings.
These targets are necessary for Greece to be allocated its bailout money, but the measures have been met with protests and general strikes outside parliament in the nation's capital.
At 15:45 GMT, the euro was higher by 0.2 per cent in trading with the dollar to €1 buying $1.273 and it made gains of 0.2 per cent versus the pound to £0.802.
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