A report that Greece is mulling an exit from the euro is pulling the currency down despite denials from Greek and other euro zone officials. But this strategist thinks it's a serious long shot.
"Nobody wants it," says Alan Ruskin, global head of G10 FX strategy at Deutsche Bank. "Greece doesn't want it, and neither do the other countries, really. If Greece has any incentives, the first thing to do is restructure" its debt, Ruskin told me. "Why would you exit before restructuring?"
It appears that euro zone officials will be meeting, Ruskin says, and it's quite likely that the subject of Greece and its debt burden will be high on the list of discussion topics. But, he adds, "That’s a long way away from saying Greece is going to leave the euro. A long, long, long way."
The euro, which was within inches of $1.50 on Wednesday, traded below $1.44 on the report, which appeared just a day after European Central Bank President Jean-Claude Trichet disappointed investors hoping he would hint at an interest rate hike in June.
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