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Greek turmoil casts shadow over forex market

From Sweden to Switzerland, central banks are battling to contain appreciation of their currencies versus euro; BOE's moves towards higher rates are also likely to be hampered

Published Tue, Jul 7, 2015 · 09:50 PM

Greece

London

GREECE'S debt turmoil has found a favourite conduit for spreading contagion: the US$5.3 trillion-a-day foreign-exchange market.

From Sweden to Switzerland, central banks are battling to contain an appreciation of their currencies versus the euro. Greek risks are also infiltrating markets in Eastern Europe after Greece's decisive vote against austerity this week.

Even the Bank of England (BOE), whose economy is showing signs of a gradual recovery, may…