The euro fluctuated against the dollar amid speculation Greek Prime Minister Lucas Papademos and coalition party leaders will fail to agree on terms required for a bailout.
The Dollar Index rose from its weakest level in two months on demand for a refuge as Greek political leaders were locked in discussions with Papademos. The yen fell against the majority of its major peers as Japan’s current-account surplus slid to a 15- year low in 2011. Brazil’s real rallied even as the central bank bought dollars in the forwards market.
“Greece, its leaders and its people are not going to agree to anything unless there is a silver lining and a return to growth,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp. “It’s not credible to think they’ll agree to measures that have recession as far as the eye can see.”
Europe’s shared currency was little changed at $1.3567 at 1:09 p.m. New York time after reaching $1.3289, the most since Dec. 12. The euro was 0.4 percent stronger at 102.19 yen after earlier touching 102.45, the strongest level since Dec. 21. The yen weakened 0.3 percent to 77.01 per dollar.
Greece’s Papademos negotiated with political leaders in Athens after delaying the gathering for a second time in as many days. Yesterday he met officials from the European Commission, the European Central Bank and the International Monetary Fund to put the final touches on terms required for a 130 billion-euro ($172 billion) bailout.
Euro-area finance ministers are due to gather tomorrow in an emergency meeting in Brussels as the Greek government pushes to complete talks.
The Dollar Index rose from its weakest level in two months on demand for a refuge as Greek political leaders were locked in discussions with Papademos. The yen fell against the majority of its major peers as Japan’s current-account surplus slid to a 15- year low in 2011. Brazil’s real rallied even as the central bank bought dollars in the forwards market.
“Greece, its leaders and its people are not going to agree to anything unless there is a silver lining and a return to growth,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp. “It’s not credible to think they’ll agree to measures that have recession as far as the eye can see.”
Europe’s shared currency was little changed at $1.3567 at 1:09 p.m. New York time after reaching $1.3289, the most since Dec. 12. The euro was 0.4 percent stronger at 102.19 yen after earlier touching 102.45, the strongest level since Dec. 21. The yen weakened 0.3 percent to 77.01 per dollar.
Greece’s Papademos negotiated with political leaders in Athens after delaying the gathering for a second time in as many days. Yesterday he met officials from the European Commission, the European Central Bank and the International Monetary Fund to put the final touches on terms required for a 130 billion-euro ($172 billion) bailout.
Euro-area finance ministers are due to gather tomorrow in an emergency meeting in Brussels as the Greek government pushes to complete talks.
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