Euro Hits Eight Week-High as Crisis Talk Progress

By TraderVox.com

The speculation of progress in the Greece crisis catapulted the Euro to an eight-week high on a day that saw the yen fall against major currency. Investors were looking forward to positive results from Greece in its efforts to meet the requirements required for Greece to get financial aid. The Greek Premier is expected to three political party leaders in Athens to discuss the way forward.

Jane Foley, a senior strategist at Robobank International said that many investors are viewing the situation in Greece from a half-full perspective which has resulted to higher prices for euro any positive news from Greece. Against the dollar, the 17-nation currency gained o.1% to settle at 1.3276 and rose to 102.4 yen which represented an increase of 0.6%.

Greece Prime Minister convened an unscheduled meeting yesterday with the troika members who include European Central Bank, International Monetary Fund, and European Commission to review the terms required for the second bailout. However, yen’s drop was as a result of the surplus in current account which reduced to 44 percent last year. Analysts believe that the data from the current-account balance is a selling point for the Yen.

The Australian Dollar rose against the US dollar to settle at 1.0836 which had earlier catapulted to $1.0844. this is the strongest the Aussie Dollar has been against the US dollar. Further, the New Zealand’s currency increased against the USD by 0.4 percent to settle at 83.89 US cents. This is also another high since September 5.

The ECB had indicated that it is willing to swap its holdings with the government bonds as a way of reducing the country’s debt burden. However, this claim must be made formal by February 13th for procedures to be completed by 20th of March. These developments in the Eurozone are expected to continue causing the currency bounce back as investors are waiting on any type of news from the region. Positive news will see the currency grow stronger against major currencies.

 

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13 years ago