The Euro Takes A Tumble After Lagarde Suggests The Public Sector Could Take Losses

The euro tumbled about $0.01 in early trading today, sending the currency below the $1.30 handle it has been flirting with for the last few months.

That comes as reports surface that the European Central Bank is maintaining its steadfast opposition to taking losses on its Greek bond holdings as part of a more potent debt restructuring than is currently being considered.

International Monetary Fund Managing Director Christine Lagarde set off a flurry of speculation about the possibility of public sector involvement in the restructuring today when she told journalists in Paris, “If the level of Greek debt held by the private sector is not sufficiently renegotiated, then public sector holders of Greek debt should also participate in the efforts” (via Reuters).

Check out the euro versus the dollar since early this morning: