By Kristine Aquino -
Aug 21, 2012 7:32 AM GMT+0800
The euro remained higher before
Luxembourg Prime Minister Jean-Claude Juncker visits Greece
tomorrow to discuss the country’s request for an extension to
its fiscal adjustment program.
The 17-nation currency rose versus most of its 16 major counterparts after Spain’s benchmark yields slid to a seven-week low yesterday, supporting the outlook for demand at a bill auction today. Australia’s dollar held gains before the Reserve Bank publishes minutes of its policy meeting this month, when it kept interest rates the highest in the developed world.
“European policy makers seem to be grasping the nettle a little more compared with six months ago,” said Mike Jones, a currency strategist in Wellington at Bank of New Zealand, which sees the euro at $1.33 by year-end. “We’ve been increasingly bullish on the euro.”
The euro was at $1.2353 at 8:16 a.m. in Tokyo after climbing 0.1 percent to $1.2346 yesterday. It bought 98.07 yen from 98.05. The dollar was little changed at 79.40 yen. Australia’s currency traded at $1.0450 after gaining 0.2 percent to $1.0444 in New York.
Luxembourg’s Juncker, who also heads the group of euro-area finance ministers, will discuss a request by Greece’s Prime Minister Antonis Samaras for a two-year extension to the indebted nation’s fiscal adjustment program when he visits Athens tomorrow. Samaras travels to Berlin and Paris on Aug. 24 and 25 after French President Francois Hollande and German Chancellor Angela Merkel meet in the German capital on Aug. 23.
Spain’s 10-year yields declined to as low as 6.16 percent yesterday, the least since July 2. That compares with a euro-era record of 7.75 percent reached on July 25. The nation is scheduled to offer 546-day and 364-day bills today.
To contact the reporter on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
The 17-nation currency rose versus most of its 16 major counterparts after Spain’s benchmark yields slid to a seven-week low yesterday, supporting the outlook for demand at a bill auction today. Australia’s dollar held gains before the Reserve Bank publishes minutes of its policy meeting this month, when it kept interest rates the highest in the developed world.
“European policy makers seem to be grasping the nettle a little more compared with six months ago,” said Mike Jones, a currency strategist in Wellington at Bank of New Zealand, which sees the euro at $1.33 by year-end. “We’ve been increasingly bullish on the euro.”
The euro was at $1.2353 at 8:16 a.m. in Tokyo after climbing 0.1 percent to $1.2346 yesterday. It bought 98.07 yen from 98.05. The dollar was little changed at 79.40 yen. Australia’s currency traded at $1.0450 after gaining 0.2 percent to $1.0444 in New York.
Luxembourg’s Juncker, who also heads the group of euro-area finance ministers, will discuss a request by Greece’s Prime Minister Antonis Samaras for a two-year extension to the indebted nation’s fiscal adjustment program when he visits Athens tomorrow. Samaras travels to Berlin and Paris on Aug. 24 and 25 after French President Francois Hollande and German Chancellor Angela Merkel meet in the German capital on Aug. 23.
Greek Cuts
Greek Finance Minister Yannis Stournaras said an 11.5 billion-euro ($14.2 billion) package of spending cuts for the next two years was still under consideration by the government. The package will be ready by the time the so-called troika of the European Commission, European Central Bank and International Monetary Fund returns to Athens early next month, Stournaras told reporters yesterday after a meeting with Samaras. His comments were televised live on state-run NET TV.Spain’s 10-year yields declined to as low as 6.16 percent yesterday, the least since July 2. That compares with a euro-era record of 7.75 percent reached on July 25. The nation is scheduled to offer 546-day and 364-day bills today.
To contact the reporter on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
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