The euro currency tumbled Monday amid widespread weakness in European financial markets after Greece admitted that it will not meet certain deficit reduction targets.
Last evening the Greek finance ministry announced that the nation’s 2011 deficit is expected to come in at 8.5% of GDP, well north of the 7.8% previously forecasted.
Adding further fuel to the fire, on Monday the Greek government submitted its 2012 budget to Parliament. Next year the deficit is now estimated to be 6.8% of GDP, above the prior 6.5% target.
“The revelations that Greece is finding it increasingly difficult to reduce its borrowings in spite of all its austerity measures has raised fears that international creditors will effectively pull the plug on its bailout accords,” according to the Associated Press. ”That could have massive repurcussions throughout Europe especially if the banks stop lending to one another for fear of each other’s exposure to Greek debt.”
Euro zone finance ministers – including Greece’s Evangelos Venizelos – are meeting this afternoon in Luxembourg to discuss next steps in light of the disappointing news from Athens.
The euro traded modestly lower near 1.3330 against the U.S. dollar for most of the morning, but later extended its losses, reaching an intra-day low of 1.3238 at approximately 11am ET. The currency cross subsequently pared its losses, but remained lower by 0.5% at 1.3281.
While the euro has fallen considerably against the dollar in recent months, its performance versus the Japanese yen is far worse. The euro reached 101.71 yen earlier this morning, its lowest level since September 2001.
Klondex Mines Delivers Updated Resource for Fire Creek
* The cut-off grade also resulted in an inferred resource estimate of 458,084 ounces of gold.
* During 2009 and 2010, 14 holes were drilled to in-fill known mineralization, eight holes were drilled to extend the known zones along strike and 13 holes were drilled to test new geophysical targets.
