Euro Advances Versus Most Peers on Optimism Greek Austerity Plan Will Pass

The euro strengthened against the majority of its most-traded counterparts amid optimism Greece’s parliament will approve austerity measures required to help avert the currency bloc’s first sovereign default.

The shared currency snapped three-day slumps versus the yen and dollar as the German government welcomed proposals from French lenders on voluntary participation in a roll-over of Greek debt. Stocks rose. New Zealand’s dollar was the biggest loser against the euro as the nation’s trade surplus narrowed.

“France and Germany are giving people confidence,” said Brian Taylor, chief currency trader a Manufacturers & Traders Trust in Buffalo, New York. “The optimism in the equity market today is helping the euro, and people are feeling good that a deal might be struck. We are not buying it because we’re not confident enough yet in what we’re hearing.”

The euro gained 0.5 percent to $1.4264 at 1:33 p.m. in New York, from $1.4188 on June 24. It climbed 1.2 percent to 115.44 yen, from 114.13. The dollar appreciated 0.6 percent against the Japanese currency to 80.93 yen, from 80.43.

“We will be capped on this present move at $1.4325,” Taylor said.

The Swiss franc, which reached a record high 1.1806 per euro last week amid investor concern Greek lawmakers would be unable to pass the austerity plan, fell for the first time in four days. It declined 0.9 percent to 1.1932 per euro.

Greek lawmakers are starting debate today on the five-year, 78 billion-euro ($111 billion) package of budget cuts and asset sales that officials say is needed to receive a loan payment and future financing from the European Union and the International Monetary Fund.