Euro Advances on Speculation Germany Will Signal Aid for Region


Staff member
Nov 30, 2008
The euro rose from near a three- month low against the dollar on speculation German Chancellor Angela Merkel will signal Europe’s largest economy plans to take action to help avert the financial turmoil in the region.

The euro snapped three days of losses against the dollar after Finance Minister Peer Steinbrueck said yesterday Germany would show its “ability to act” as some of the 16 countries sharing the currency struggle with the global financial turmoil. Merkel will today hold a joint press conference with European Commission President Jose Barroso in Berlin. The dollar fell against the yen after a technical chart signaled its advance to a six-week high was too rapid.

“Eurozone countries have started to recognize the importance of the financial system and begun to address it properly,” said Akio Yoshino, chief economist in Tokyo at Societe Generale Asset Management Ltd., a unit of France’s third-largest bank. “Optimism about the stabilization of the European financial system may help to halt the recent steep decline of the euro.”

The euro climbed to $1.2580 as of 6:08 a.m. in London from $1.2530 late in New York yesterday, when it touched $1.2513, the lowest level since Nov. 21. Europe’s single currency traded at 117.49 yen from 117.50 yen. The dollar fell to 93.41 yen from 93.79 yen yesterday, when it reached 93.96, the highest level since Jan. 7.

From Bloomberg News.