Euro recovers slightly after Greek polls; ruble sinks
Euro pulled higher against dollar in the wake of leftist Syriza party's victory in Greek elections.
NEW YORK (AFP) - The euro pulled higher against the dollar in late trade Monday after hitting a 12-year low of $1.1101 in the wake of the leftist Syriza party s victory in Greek elections.
The choice of Syriza leader Alexis Tsipras as prime minister raised the prospect of tough talks with Greece s creditors over easing rescue terms, if not more debt restructuring, and likely more turbulence in the markets.
"Investors can expect Greek-led market volatility for at least six months until a Syriza-led government is better understood," said Tom Elliott, a strategist at investment advisor deVere Group.
"The euro will weaken -- perhaps to parity with the dollar -- over the next six months as investors seek safe havens," he added.
In late trade the euro pulled back to $1.1234, and to 133.12 yen. The greenback was also higher against the yen at 118.49.
Meanwhile the ruble sank after a deadly rocket attack on Mariupol, Ukraine, by pro-Russian rebels raised the prospect of more Western sanctions on Moscow and Standard & Poor s cut Russia s debt rating to junk level.
The dollar bought 67.18 rubles in late trade, compared with 64.13 late Friday.
