Euro gains against greenback after Greece approves bailout

Posted On: March 21, 2012
The value of the common currency of the European Union rose against the world's reserve currency on Wednesday amid indications that Greece's second bailout since June 2010 is on schedule, according to Reuters.

The Aegean nation's lawmakers voted to approve the second tranche of international aid, which was viewed as a ceremonial formality. But the approval proved to be beneficial to an extent given the strong performance of the U.S. dollar.

"This was not a big step but has been perceived as positive by the market," currency analyst Lutz Karpowitz with Commerzbank told Reuters. "We would expect these levels not to break which would mean the euro/dollar uptrend comes to an end in the short-term. The broader trend is still a stronger dollar and on that point we see the economy picking up in the U.S."

The world's reserve currency has gained strength during the past month amid the decreasing likelihood of monetary easing, which floods the market with the monetary unit and waters down its value.

Bloomberg reports the value of the single currency rose to nearly its top value in nearly 14 days as it performed strongly against all but two of its 16 counterpart currencies.

Category: Industry News

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