The euro and growth-linked currencies may fall on Monday, hit by a lack of concrete measures from Group of Seven finance chiefs to address either faltering growth, the escalating euro zone debt crisis, or exchange-rate volatility.
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The euro bounced mildly on Wednesday, boosted by stronger stocks, but was still lingering close to a two-month low, while the Swiss franc was nursing 10 percent losses against the single currency after the Swiss central bank set a limit on how much it can gain.*
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The U.S. central bank's plan to keep interest rates low for an extended period could add inflation pressure in countries like South Korea, Finance Minister Bahk Jae-wan said on Friday.
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The Federal Open Market Committee holds its regularly scheduled meeting Tuesday and is not expected to announce any major policy initiatives as the decline in financial markets is viewed as too fresh for the Fed to react to in any major way.
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Markets are likely to keep up the pressure on Italy and Spain and the European Central Bank seems to be the only authority that could act quickly, analysts told CNBC.com Tuesday.
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German Chancellor Angela Merkel called on Sunday for private investors to make a major contribution to bailing out Greece, as pressure rose for radical action to cut the country's debt burden.
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Weighing in on which country will be the next Greece based on Euro zone crisis fears, with Subodh Kumar, Subodh Kumar and Associates and Kevin Ferry, Kronus Futures Management.
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Greece's parliament begins on Monday to debate a deeply unpopular austerity plan which international lenders are demanding to see approved this week to avert the threat of bankruptcy.
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