Euro hovers near two-month lows vs dollar; Gold tumbles to five-year trough on rate hike hopes
Greek banks reopened Monday after a three-week shutdown. However, investors remained cautious over the finalizing of the bailout, which sent EUR/USD to two-month lows.
Meanwhile, gold has hit a five-year low with investors weighing the possibility of higher interest rates in the U.S.
Greek banks reopened on Monday after a three-week closure but restrictions on cash withdrawals remained. However, the Athens exchange will remain closed. The exchange could open in a couple of days, according to Evangelos Charatsis, managing director of Beta Securities, a financial services firm.
In a decree Saturday, the Greek authorities added a weekly limit of €420, but kept the daily cash withdrawal at €60.
The decree came on the same day as Greek Prime Minister Alexis Tsipras reshuffled his cabinet. Five prominent dissidents from the Syriza party - the ruling party - were replaced.
On Friday, German lawmakers voted in favour of opening talks on Greece's third bailout package while the European Union decided to release a short-term loan of €7.16 billion to help Greece pay back a loan due Monday to the European Central Bank.
Over the weekend, French President Francois Hollande called for greater European integration.
In the currency market, the greenback remained buoyed by hopes for the Federal Reserve rate hikes after upbeat data released Friday. The dollar index was last at 97.889, higher 0.03%.
EUR/USD was vulnerable hovering near 1.0820 during late Asia trade - the pair's lowest since May 17, and was last at 1.0854, higher 0.23%.
Elsewhere, August gold futures slipped 2.3%, or $25.40, to $1,106.50 a troy ounce, a level last seen in March 2010.
Other metals prices also declined Monday. Silver, often considered a
cheaper alternative to gold, has been pushed and traded 1.6% lower
to $14.60 an ounce.
October platinum dropped $29.90, or nearly 3%, to $604.45 an ounce, while palladium gave up $14.70, or 2.4%, to $604.30 an ounce.
