Finance Chiefs Fail to Bolster Euro on Greece

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The euro dropped against the dollar and yen for a second day after European officials failed to offer a plan to halt the region’s debt crisis and as Greece struggles to avoid default.

The 17-nation currency slid against most of its 16 major peers before European Union and International Monetary Fund officials speak today with Greek Finance Minister Evangelos Venizelos to judge whether his government is eligible for its next aid payment. The dollar rose against the majority of its most-traded counterparts as Asian stocks slid and investors bought the safest assets on concern Europe’s debt crisis will weigh on global growth.

The IMF and EU are reviewing whether Greece can meet the conditions of its rescue loans and is eligible for the next payment due in October and for a second rescue package. They suspended their assessment earlier this month after discovering a hole in the budget.

German Finance Minister Wolfgang Schaeuble and Bundesbank President Jens Weidmann rejected using the European Central Bank to boost the euro-area rescue fund’s firepower, rebuffing a suggestion by U.S. Treasury Secretary Timothy Geithner.

http://www.bloomberg.com/news/2011-09-18/dollar-rises-against-euro-kiwi-australian-dollar-in-early-asia-trading.html