Tags: Dollar

Euro Eases Off One Year Low as Greece Calls for Aid

Friday, 23 Apr 2010 08:07 AM

The euro rose Friday from its lowest point in a year as debt-ridden Greece, which uses the shared currency, asked for the activation of a financial rescue package worth more than $50 billion from other eurozone countries and the International Monetary Fund.

Worries about European countries' debt, particularly in Greece and now Portugal, have helped strengthen the dollar in recent months, pushing it up nearly 5 percent this year against the 16-nation euro.

In early morning trading, the euro was quoted at $1.3301 in New York versus $1.3316 late Thursday. Before Greece requested that the aid plan be put into use, the euro had sunk as low as $1.3202, the weakest point since April 2009.

Analysts cautioned that the aid package would last Greece only into next year, and a multi-year program would likely be necessary. Meanwhile, the tax hikes and services cuts in European countries struggling to contain debt could undermine their economies, even as the U.S. economic activity grows by more than 3 percent this year. That's likely to keep the euro dropping lower towards below $1.30, said Brown Brothers Harriman analysts in a research note Friday.

"Relief for the (euro) will be a stop-and-start process," said Credit Suisse analysts. The German parliament still has to approve aid for Greece, and Portugal, too, is struggling with heavy debts.

Also on Friday, the closely-watched Ifo survey of German business confidence rose in April for the second straight month, signaling strength in Europe's biggest economy.

In other trading Friday morning, the British pound fell to $1.5364 from $1.5389 after a weak report on first-quarter gross domestic product.

The dollar gained to 93.49 Japanese yen from 93.35 yen.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
2Share
Markets
The euro rose Friday from its lowest point in a year as debt-ridden Greece, which uses the shared currency, asked for the activation of a financial rescue package worth more than $50 billion from other eurozone countries and the International Monetary Fund.Worries about...
Dollar
277
2010-07-23
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved