The European Central Bank is unlikely to accept any default-rated Greek bonds as collateral, and thus the French proposal to roll over Greek securities announced last week will probably be withdrawn, according to Commerzbank AG.
Turkish central bank Governor Erdem Basci indicated to analysts in London on April 3 that he planned to keep monetary policy tight to control inflation. Less than a week later, after the country’s premier weighed in on the matter, he was sending out different signals.
The hryvnia rallied after Ukraine’s central bank raised interest rates by the most since 1998 to stem the world’s worst selloff this year. Government bonds dropped amid a military confrontation in the country’s east.
Ukraine’s hryvnia may slide at least 20 percent against the dollar as the International Monetary Fund pushes the country to accept greater exchange-rate flexibility and banks and businesses convert a backlog of the currency, according to Commerzbank AG.
The yen rose the most in almost a month versus the euro on speculation Bank of Japan stimulus is boosting the economy while the European Central Bank will expand currency-debasing measures to revive growth.
The euro rose against the dollar, extending a gain from last week, amid optimism Europe’s leaders meeting this week will signal support for Greece and outline fresh measures to combat the region’s debt crisis.
Polish shares fell the most in June as leaked recordings of a conversation between the central bank chief and a minister sparked a political crisis. The zloty pared losses as Prime Minister Donald Tusk defended the policy maker.