The euro strengthened against the dollar and the yen on speculation that China will buy European bonds, although the Greek debt crisis threatening economic recovery in the region.
The single currency to get a boost after the Financial Times reported that Chief Executive Facilities Financial Stability in Europe (EFSF), Klaus Regling has told investors in Asia, including Chinese, Portuguese bailout will buy bonds when EFSF start selling them in June.
“Comments from the head EFSF that China is clearly interested in buying the issuance of bonds next month is to provide support for the euro,” said Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney.
The euro rose to $ 1.4146 at 10:16 am in Tokyo from $ 1.4088 in New York yesterday. The euro had fallen as low as $ 1.3970 on May 23. The single currency rose 0.4 percent to 115.96 yen. The dollar traded at 81.98 yen from 81.97 yen.
Asian investors, including the Chinese government, could become “a strong proportion” of the Portuguese bailout bond buyers, told the Financial Times that Regling told reporters yesterday.
For more please see www.ForexTradingEVO.com
