Dollar Slides As Political Unrest Threatens World Currency

The global market is once again vulnerable as political turmoil in the European country of Greece has brought the dollar to $US1.007 today. This is the currency’s weakest since December 22, 2011. 

The Australian dollar, meanwhile, is also expected to slip towards parity as European tensions are setting back the world’s debt crisis even further. 

Last night, Antonis Samaras was unsuccessful in forming a coalition government, following the weekend elections. Samaras is the leader of Greece’s New Democratic Party.

The leader of the left-wing party, Alexis Tsipras has been forming his own government as well, citing that the popular vote was in his party’s favor. 

Analysts in Australia confirm that parity is close and that with all these pressures there is definitely a risk that world currency will be affected.

This comes at a time when the Federal Government is expected to release the latest jobs data that will be the Reserve Bank’s basis for rate cuts that will be made in June. If numbers are weak, it would push the bank to make another rate cut, further affecting the dollar. 

Several months ago, economists have predicted that 5000 jobs will be shed in April, putting the unemployment rate at 5.3 percent. It is expected to rise at 5.5 percent by June of 2013. 

The budget, which was released the other day, only significantly made an impact to the dollar rate and the general consensus is that it will continue to slide given the world’s political uncertainty.