Greenback falls against euro as Greek prospects brighten

Posted On: February 17, 2012
The value of the U.S. dollar dropped on Friday against the shared currency of the European Union but rose against the Japanese yen following remarks from the central bank of the Pacific Rim nation, according to MarketWatch.

The euro climbed from uplifting sentiment regarding Greece's receipt of its second bailout tranche since June 2010. The Aegean nation is likely to use funds from the second bailout to make payments from the second one, thus avoiding a plunge to never-neverlands of financial default.

"In the euro dollar pair, the dollar is weakening on better economic fundamentals in the U.S. and also on the interest rate differential against the euro," macro strategist Richard Hastings with Global Hunter Securities told MarketWatch. "So the combination of interest rate differentials today are helping to support the euro."

Economists said a U.S. report showed leading economic and developmental indicators gained for a fourth consecutive month.

The value of the Japanese yen, which is considered a safe-haven investment, has dropped 6.2 percent during the past four weeks, according to Bloomberg.

Category: Industry News

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