Dollar down as Greece votes on further cost cuts

The US dollar has fallen slightly against a basket of other currencies as investors bet that the currency has risen too fast recently against a background of debt problems in Europe and continuing economic uncertainty at home. However, all eyes are now on who will be leading the country as Americans await the results of the presidential election.\r\n\r\nIndications are that President Obama will beat Mitt Romney for a second term in office and most of the markets are prepared for an Obama victory. The euro has risen after hitting its lowest level against the dollar for two months as expectations are high that Greece will accept further austerity measures to secure much needed foreign aid.\r\n\r\nAmong the demands being made of the debt laden country are guarantees that some pensions will be cut by as much as a quarter and that holiday bonuses will be scrapped.\r\n\r\nOn Tuesday Greek workers began a strike due to last for 24-hours. Union leaders claim the proposals by the government are unfair and will drive the country to economic collapse.\r\n\r\nBank of New York Mellon currency strategist, Neil Mellor, said investors were now becoming disillusioned with what is happening in the eurozone. He explained that initial enthusiasm by the European Central Bank’s debt buying plans was on the wane as Spain is still to ask for a bailout and a positive vote in Athens is unlikely to boost the euro for long.