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$A higher ahead of Greek swap deal

Reported by AAP
Friday, March 9, 2012
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The Australian dollar has risen a quarter of a US cent as markets wait to see whether a debt-swap deal between Greece and its private sector creditors will go ahead.

At 0630 AEDT the Australian dollar was trading at 106.40 US cents, up from 106.16 US cents on Thursday afternoon.

The currency's rise came amid optimism that a bond-swap deal between debt-stricken Greece and its private sector creditors would go ahead.

Greece is set to announce, at 0700 AEDT, whether it has been able to sign up enough of its creditors to the deal, which would see investors swap their government bonds for new ones with a lower face value and lower rate of interest.

The deal is necessary for Greece to be able to access the 130-billion-euro ($A162.13 billion) international bailout it requires in order to avoid defaulting on its debt.

Worries the deal might not go ahead helped send share markets and risk currencies like the Australian dollar lower earlier this week.

However, news reports quoted a Greek official on Friday morning (AEDT) stating that participation in the deal was above the 75 per cent level required for it to go ahead.

21/12/2014 21:40Sydney, Australia. 21 December,2014
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