The single currency declined versus the greenback as the European Central Bank is regarded now as less likely to accelerate the interest rate increases this year and the markets expect ECB to hold the borrowing costs after July increase.

In addition, Jean-Claude Trichet rejected the idea of the central bank’s any direct participation in a second bailout for Greece at the press-conference yesterday. The ECB’s head said that it could accept a plan in which investors voluntarily agree to buy Greek bonds to replace maturing debt, but has no intention of rolling over its own Greek holdings.

Analysts at Daiwa Securities claim that euro has the potential to fall. The specialists say that Trichet won’t compromise now as the ECB has already taken the main burden of the crisis.

The ECB began buying bonds of the indebted nations in May last year. According to Barclays Capital, the central bank has so far purchased 75 billion euro worth of assets in the secondary market under its Securities Market Program, which, according to the euro area’s monetary authorities, is temporary and not designed to finance governments.

As a result, the European politicians may have no choice but to ask their taxpayers to finance Greek budget shortfall that may reach 90 billion euro ($130 billion) in 2014.

Analysts at Deutsche Bank claim that although the ECB can’t buy bonds on the primary market, it is able to convince private bondholders to roll over by re-launching its SMP program on the secondary market. In their view, Trichet’s comments indicate that the Europeans are still far from a fully fledged solution.

On June 23-24 there will be EU summit aimed to decide on a new aid package for Greece. According to the information from 2 unnamed officials cited by Bloomberg, the new bailout plan implies that the European governments and the IMF would provide the nation with 45 billion euro more.