Euro Dollar
Euro Dollar
The euro rose against the dollar for the first time in three days on prospects the regions debt crisis wont keep the European Central Bank from increasing interest rates further.
The common currency gained versus most of its major counterparts as European Union officials may require Greece to provide collateral for aid. The yen fell against the euro amid speculation traders took advantage of the Japanese currencys gain to an almost six-week high to sell it. The Australian dollar rose for a second day before a report tomorrow forecast to show Chinas imports increased in April.
“The Greek issue comes and goes and it might push the euro down a little bit this week, but the ECB is still likely to raise interest rates more than the Fed over the next six months,” said Joseph Capurso, a currency strategist at Commonwealth Bank of Australia in Sydney. “I dont think its going to be an extended period of euro weakness.”
The euro strengthened to $1.4392 as of 10:31 a.m. in Tokyo from $1.4316 in New York on May 6, when it touched $1.4311, the lowest since April 19. The shared currency gained to 116.02 yen from 115.44, after touching 114.99 in early trading, the weakest since March 29.
The yen was at 80.61 per dollar from 80.63. It reached 79.57 versus the U.S. currency on May 5, the strongest since March 18, when Group of Seven central banks intervened to stem the yens gain following a record earthquake in Japan that month.
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