Greece elections 2015: Euro hits 11-year low against dollar on Syriza victory

The euro hit an 11-year low against the dollar as investors digest what Syriza’s election victory in Greece means for the eurozone’s future.

The currency fell as low as $1.1088, the lowest level against the dollar in more than 11 years, but in mid-morning trading was 0.4% higher at $1.125.

Europe’s main share markets also rose – after initial falls – on hopes that a compromise over Greece’s bailout terms might be found.

Syriza wants to renegotiate the €240 billion bailout and slow the austerity cuts.

The left-wing party’s leader Alexis Tsipras said he wanted negotiation, not confrontation, with Greece’s international lenders.

“The new Greek government will be ready to co-operate and negotiate for the first time with our peers a just, mutually beneficial and viable solution,” Alexis Tsipras said.

The troika of lenders that bailed out Greece – the European Union, European Central Bank, and International Monetary Fund – imposed big budgetary cuts and restructuring in return for the money.

Alexis Tsipras said: “The troika for Greece is the thing of the past.”

The euro had already been under pressure following last week’s announcement of a new stimulus program by the European Central Bank.

Greece’s current bailout program ends in February, and economists say a short term deal will be negotiated, but difficult talks lie ahead. Germany has indicated that it is not prepared to renegotiate the bailout terms, raising the prospect that Greece could end up leaving the eurozone.