Euro Gains Against Most-Traded Peers on Reassurance About Greek Debt Plan

The euro rose against the majority its most-traded counterparts after European leaders reassured investors a Greek default on its debts can be avoided, easing concern about a spreading regional credit crisis.

The 17-nation shared currency erased its decline versus the yen and dollar, as Luxembourg’s Jean-Claude Juncker said Greek Prime Minister George Papandreou had assured him the government would do everything ensure financial aid before a no-confidence vote is his government tomorrow. The Swiss franc remained higher against all its counterparts as German Finance Minister Wolfgang Schaeuble said any participation in the bailout by private investors would have to be voluntary. The Brazilian real gained as the country’s credit was upgraded.

“We’re taking the commentary as still muddling through, which is better for the euro than say, a default occurring tomorrow,” said David Mann, regional head of research for the Americas at Standard Chartered in New York. “People have got ultra-short term in their horizons. The most important thing now is the no confidence vote in Greece tomorrow.”

The euro traded at $1.4318 at 12:48 p.m. in New York, from $1.4306. It earlier declined as much as 0.8 percent to $1.4191. The shared currency gained 0.4 percent against the yen to 114.94 after falling 0.2 percent. The dollar gained 0.3 percent to 80.27 yen from 80.05.