Euro dives as concerns spread about Greece

The common currency of the European Union dropped in value Monday against the U.S. dollar as all eyes fell on debt-hobbled Greece as the Aegean nation conducts negotiations to stave off defaulting on loan obligations, Reuters reports.

Fears abound for the damaging impact of a Greek default on other euro zone nations and foreign exchange markets as the country is working on finalizing terms and conditions to receive the funds of its second bailout package, some of which will be used to affect payments on the first. The second tranche is coming from the International Monetary Fund and the euro zone.

"There is a slight risk that this could all break down before March. I don't think a disorderly default is priced into the market at all," FX strategy head Chris Turner with ING told the news service.

The second tranche of bailout aid is worth 130 billion euros, which is roughly equivalent to $169.7 billion. One deadline under watch is March, when repayments for bonds become due.

The Associated Press reports the third quarter of 2011 saw levels of debt soar in Greece, Portugal and Ireland, three euro zone nations that already have received bailout aid.