The euro rose to the highest in eight weeks against the dollar as Greek officials and creditors worked on the final draft of an agreement on budget and structural measures needed to free up a second aid package.
The Dollar Index fell to its lowest since December as stocks and commodities erased earlier losses. The 17-nation currency rallied against all of its major counterparts after an official, who declined to be named, said the budget document would be discussed by political party leaders tonight. Australia’s dollar surged after the central bank unexpectedly kept interest rates unchanged.
“Euro-dollar has driven up through $1.32 and is taking other currencies with it because people feel this thing just may be resolved,” said Martin Briggs, senior risk consultant for AFEX Markets Plc in London. “There’s been a lot of nervousness about Greek debt talks, and the market seems to have become more sanguine at this time. In the end, the euro politicians will strong-arm the Greeks into the austerity measures.”
The euro rose 1 percent to $1.3257 at 12:48 p.m. New York time after touching $1.3270, the highest level since Dec. 12. The yen fell 0.4 percent to 76.88 per dollar after dropping to 76.97, the weakest since Jan. 25. The shared currency gained 1.3 percent to 101.84 yen.
Greek Prime Minister Lucas Papademos planned to convene the nation’s political leaders to seek consensus on the cuts required for a bailout. He is meeting today with Charles Dallara, managing director of the International Institute of Finance, the body in charge of negotiating for private-sector involvement in Greek debt reduction, an unnamed spokeswoman at the premier’s office said. Papademos will meet with political leaders at 9 p.m. in Athens.
The Dollar Index fell to its lowest since December as stocks and commodities erased earlier losses. The 17-nation currency rallied against all of its major counterparts after an official, who declined to be named, said the budget document would be discussed by political party leaders tonight. Australia’s dollar surged after the central bank unexpectedly kept interest rates unchanged.
“Euro-dollar has driven up through $1.32 and is taking other currencies with it because people feel this thing just may be resolved,” said Martin Briggs, senior risk consultant for AFEX Markets Plc in London. “There’s been a lot of nervousness about Greek debt talks, and the market seems to have become more sanguine at this time. In the end, the euro politicians will strong-arm the Greeks into the austerity measures.”
The euro rose 1 percent to $1.3257 at 12:48 p.m. New York time after touching $1.3270, the highest level since Dec. 12. The yen fell 0.4 percent to 76.88 per dollar after dropping to 76.97, the weakest since Jan. 25. The shared currency gained 1.3 percent to 101.84 yen.
Greek Prime Minister Lucas Papademos planned to convene the nation’s political leaders to seek consensus on the cuts required for a bailout. He is meeting today with Charles Dallara, managing director of the International Institute of Finance, the body in charge of negotiating for private-sector involvement in Greek debt reduction, an unnamed spokeswoman at the premier’s office said. Papademos will meet with political leaders at 9 p.m. in Athens.
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